09:20     NEW WORLD TMT<00301> - Announcement (2)                             

    Completion shall occur on the eighth Business Day after the payment of    
    the consideration or on such other date as the Vendor and the Purchaser   
    may agree in writing.                                                     
                                                                              
    INFORMATION ON LIVING COLOURS                                             
                                                                              
    The principal business of Living Colours is investment in 46% interest    
    in Datong New World High Quality Coal Co. Ltd., a Sino-foreign            
    cooperative joint venture incorporated in the PRC. The principal          
    business activity of Datong New World High Quality Coal Co. Ltd. is the   
    operation of certain coal mines located in Shanxi, the PRC.               
                                                                              
    INFORMATION ON THE COMPANY                                                
                                                                              
    The Company is principally engaged in the development, investment,        
    operation and/or management of telecommunications, media and technology   
    businesses in Hong Kong and the PRC.                                      
                                                                              
    REASONS FOR THE DISPOSAL                                                  
                                                                              
    The Disposal is consistent with the Group's business strategy as the      
    principal business of Living Colours is not in line with the Group's      
    core business.                                                            
                                                                              
    FINANCIAL EFFECT OF THE DISPOSAL                                          
                                                                              
    On Completion, the Group will incur a net gain of approximately HK$46.2   
    million based on the net sales proceeds less the unaudited consolidated   
    net liabilities of Living Colours and the shareholder's loan due from     
    Living Colours at 30 June 2004.                                           
                                                                              
    USE OF PROCEEDS                                                           
                                                                              
    The net sale proceeds from the Disposal of RMB49.4 million                
    (approximately HK$46.2 million) (after deducting relevant expenses)       
    will be used for internal working capital of the Group.                   
                                                                              
    DISCLOSEABLE TRANSACTION                                                  
                                                                              
    Applying the consideration test to the Disposal, the percentage ratio     
    computed exceeds 5% but is less than 25% of the total market              
    capitalization of the Company determined in accordance with Rule          
    14.07(4) of the Listing Rules. Accordingly, the Disposal constitutes a    
    discloseable transaction for the Company under the Listing Rules. The     
    Company will send a circular containing further details on the Disposal   
    to its shareholders as soon as practicable after this announcement.       
                                                                              
    As at the date of this announcement, the Board comprises (i) three        
    executive directors, namely Dr Cheng Kar-Shun, Henry, Mr Wong Chi-Chiu,   
    Albert and Dr Wai Fung-Man, Norman; (ii) four non-executive directors,    
    namely Mr Wilfried Ernst Kaffenberger (alternate director to Mr           
    Wilfried Ernst Kaffenberger: Mr Yeung Kun-Wah, David), Mr Fu Sze-Shing,   
    Mr Lee Sean, Sammy and Mr Lai Hing-Chiu, Dominic; and (iii) three         
    independent non-executive directors, namely Dr Lam Man-Kit, Dominic,      
    The Honourable Shek Lai-Him, Abraham and Mr Kong Chi-How, Johnson.        
                                                                              
    DEFINITIONS                                                               
                                                                              
    In this announcement, the following expressions shall, unless the         
    context requires otherwise, have the following meanings:                  
                                                                              
    "Agreement"  the agreement dated 20 January 2005 between the Vendor and   
    the Purchaser in relation to the Disposal                                 
                                                                              
    "Board"  the board of directors of the Company                            
                                                                              
    "Business Day"  a day (other than a Saturday) on which banks are open     
    for ordinary banking business in Hong Kong                                
                                                                              
    "Company"  New World TMT Limited, a company incorporated in the Cayman    
    Islands with limited liability, the shares of which are listed on the     
    Stock Exchange                                                            
                                                                              
    "Completion"  completion of the Disposal pursuant to and in accordance    
    with the Agreement                                                        
                                                                              
    "Disposal"  the disposal by the Vendor of its entire interest in the      
    issued share capital of Living Colours pursuant to the Agreement          
                                                                              
    "Group"  the Company and its subsidiaries                                 
                                                                              
    "Hong Kong"  the Hong Kong Special Administrative Region of the PRC       
                                                                              
    "HK$"  Hong Kong dollars, the lawful currency of Hong Kong