09:56     HUTCH TELECOM<02332> - Announcement (2)                             

    The BCC provides for Hanoi Telecom to contribute the right to             
    use the prescribed spectrum band for network deployment and               
    services provision, the rights and means of connection; the               
    rights of land and building usage and the rights of rental and            
    use of public areas for installation of mobile network equipment;         
    and all applicable licences and approvals in Vietnam for the              
    establishment and operation of the Business Cooperation in                
    accordance with the provisions of Vietnamese law.                         
                                                                              
    The BCC provides for Hutchison Vietnam to contribute technical            
    and management resources, the procurement and development of              
    the network as well as the finance to support the initial                 
    development of the business.                                              
                                                                              
    Under the BCC, the Parties expect the capital expenditure and             
    working capital over the 15-year term of the Business Cooperation         
    to be in the region of US$655 million (approximately HK$5,109             
    million). Peak funding from Hutchison Vietnam is expected to              
    be in the region of US$250 million, which will be financed from           
    the Company's internally generated funds and external borrowings.         
                                                                              
    The Parties will share on a 50:50 basis the free cashflow of              
    the Business Cooperation determined as the Business                       
    Cooperation's cumulative profits before tax (determined                   
    according to a pre-agreed formulation) after the repayment of             
    the funding paid or committed by Hutchison Vietnam for the                
    development of the network and the business.                              
                                                                              
    The BCC is being performed, and the Business Cooperation is being         
    operated, through a co-ordination committee on which Hanoi                
    Telecom and Hutchison Vietnam have equal representation. The              
    first Chairman of such committee, who will hold office for the            
    first five years with a casting vote, will be appointed by                
    Hutchison Vietnam. Hanoi Telecom will be entitled to appoint              
    the Chairman of such committee for the following two years.               
                                                                              
    INFORMATION ON HANOI TELECOM                                              
                                                                              
    Hanoi Telecom is a Vietnamese corporation established in 2001             
    that to date has been providing Internet as well as Voice over            
    IP services in Vietnam.                                                   
                                                                              
    The majority of shares of Hanoi Telecom is owned by the Vietnam           
    Government through two entities, Hanoi Electronics Corporation            
    and High Tech-Telecom-Informatics Corporation. These two                  
    entities have been involved in a wide range of businesses in              
    Vietnam for over 20 and 50 years respectively including                   
    telecommunications software, manufacturing of electrical                  
    appliances, personal computers and plastic styrofoam products             
    as well as owning and operating a hotel, serviced apartments              
    and an office block.                                                      
                                                                              
    Hanoi Telecom obtained a spectrum licence to provide CDMA mobile          
    services in 2003.                                                         
                                                                              
    Hanoi Telecom is independent of the Company and, to the best              
    of the knowledge, information and belief of the Directors, after          
    all reasonable enquiry, of the connected persons of the Company.          
                                                                              
    REASONS FOR, AND THE BENEFITS OF, THE BUSINESS COOPERATION                
                                                                              
    The Group has track record of developing new businesses,                  
    integrating acquired businesses in multiple markets and                   
    competing effectively as a new entrant.                                   
                                                                              
    The Business Cooperation reflects the Company's strategy of               
    expanding the geographic scope of the Group's business into other         
    high-growth markets in Asia and presents a good