10:33     HUTCH TELECOM<02332> - Announcement (4)                             

                    extraordinary items             extraordinary items       
    INR           INR           INR           INR           INR         INR   
    [HK$]        [HK$]         [HK$]         [HK$]         [HK$]       [HK$]  
    31 December 2002    113,010,000         44,403,000             20,227,000 
                        (44,964,000)       125,401,000             58,556,000 
                        [20,144,000]        [7,915,000]            [3,606,000]
                        ([8,015,000])      [22,353,000]           [10,438,000]
    31 December 2003    655,986,000        592,584,000            274,098,000 
                        164,636,000        669,447,000            511,875,000 
                       [116,932,000]      [105,630,000]           [48,859,000]
                        [29,347,000]      [119,331,000]           [91,243,000]
                                                                              
    The audited net asset value of HETL, HTEL and Fascel as at                
    31 December 2003 was INR 4,117,858,000 (approximately                     
    HK$734,021,000), INR 2,934,725,000 (approximately                         
    HK$523,124,000) and INR 2,214,526,000 (approximately                      
    HK$394,746,000) respectively.                                             
                                                                              
    REASONS FOR, AND THE BENEFITS OF, THE TRANSACTIONS                        
                                                                              
    The Board of HTIL considers the Consolidation (of which the               
    Transactions form part) to be in the interests of the Indian              
    telecommunications operations of the HTIL Group in that it will           
    facilitate a more efficient management of such operations, a              
    more effective use of resources and funds between such operating          
    companies and the holding company of the consolidated group will          
    be better placed in accessing the debt and equity markets in              
    India. An independent board committee of HTIL will be established         
    and an independent financial adviser will be appointed to advise          
    the independent board committee as to whether the Transactions            
    are on normal commercial terms, fair and reasonable and in the            
    interests of HTIL and its shareholders as a whole.                        
                                                                              
    GENERAL                                                                   
                                                                              
    The HTIL Group is a global provider of telecommunications                 
    services, and HMTL is a provider of telecommunications services           
    in India.                                                                 
                                                                              
    The Transactions constitute discloseable and connected                    
    transactions for HTIL which are subject to the reporting,                 
    announcement and independent shareholders' approval                       
    requirements of the Listing Rules. HTIL has obtained from HTI,            
    an indirect wholly owned subsidiary of HWL and holder of                  
    3,157,033,347 HTIL Shares (representing approximately 70.2% in            
    nominal value of the securities giving the right to attend and            
    vote at any general meeting of HTIL), a written approval of the           
    Transactions. HTIL has applied to the Stock Exchange for a waiver         
    from the requirement to hold a general meeting of the HTIL                
    shareholders and permission for the independent shareholders'             
    approval of the Transactions to be given in writing. A circular           
    giving details of the Transactions, a letter from an independent          
    board committee of HTIL and an independent financial adviser              
    to the independent board committee of HTIL is expected to be              
    despatched to the HTIL shareholders as soon as reasonably                 
    practicable.                                                              
                                                                              
    As at the date of this announcement, the Directors are:                   
                                                                              
    Executive Directors:    Independent Non-executive Directors:              
    Mr. LUI Pok Man, Dennis Mr. KWAN Kai Cheong                               
    Mr. Tim PENNINGTON      Mr. John W. STANTON                               
    Mr. CHAN Ting Yu        Mr. Kevin WESTLEY                                 
                                                                              
    Non-executive Directors:                                                  
    Mr. FOK Kin-ning, Canning                                                 
    Mrs. CHOW WOO Mo Fong, Susan                                              
    Mr. Frank John SIXT