09:21     TVB<00511> - Announcement (2)                                       

    benefit if the arrangement were to continue so as to                      
    utilize the existing resources and assets of the                          
    respective parties. The entry into the Agreement is                       
    on normal commercial terms and in the ordinary and                        
    usual course of business.                                                 
                                                                              
    PRINCIPAL ACTIVITIES OF TVB, LYP AND ERA                                  
    TVB and its subsidiaries ("Group") are principally                        
    engaged in television broadcasting, programme                             
    licensing and production, animation production,                           
    magazine publishing and other broadcasting related                        
    activities. LYP is principally engaged in the                             
    business of television programme production,                              
    television channel transmission and operation in                          
    Taiwan. ERA is in the business of film distribution,                      
    television programme production and channel                               
    transmission and operation.                                               
                                                                              
    IMPLICATIONS UNDER THE LISTING RULES                                      
    LYP is a 70% indirect non-wholly owned subsidiary of                      
    TVB. As ERA is an associate of a person who was a                         
    director of LYP within the preceding 12 months, ERA                       
    is accordingly a connected person to TVB as defined                       
    in the Rules Governing the Listing of Securities on                       
    The Stock Exchange of Hong Kong Limited ("Listing                         
    Rules") and the entry into the Agreement constituted                      
    connected transaction to TVB.                                             
                                                                              
    As the revenue receivable by LYP from ERA and the fees                    
    payable by LYP to ERA under the Agreement is less than                    
    2.5% for each of the percentage ratios (other than                        
    the profit ratio which does not apply to connected                        
    transaction), no shareholder approval is required and                     
    the Agreement is being disclosed in accordance with                       
    Rule 14A.32 of the Listing Rules.                                         
                                                                              
    The directors of TVB, including the independent                           
    non-executive directors, consider that the terms of                       
    the Agreement are fair and reasonable and in the                          
    interests of the shareholders of TVB, and the                             
    Agreement is entered into in the ordinary and usual                       
    course of business and on normal commercial terms.                        
    Details of the Agreement will be included in the next                     
    published annual report and accounts of TVB pursuant                      
    to Rule 14A.45 of the Listing Rules during the                            
    continuance of the Agreement.                                             
                                                                              
    As at the date hereof, the Directors of TVB are Sir                       
    Run Run Shaw, G.B.M. (EXECUTIVE CHAIRMAN), Dr. Norman                     
    Leung Nai Pang, G.B.S., LL.D., J.P. (EXECUTIVE DEPUTY                     
    CHAIRMAN), Mona Fong (DEPUTY CHAIRPERSON), Louis Page                     
    (MANAGING DIRECTOR), Dr. Chow Yei Ching, G.B.S., Ho                       
    Ting Kwan, Christina Lee Look Ngan Kwan, Lee Jung Sen,                    
    O.B.E. *, Dr. Li Dak Sum, DSSc. (Hon.), J.P. *, Kevin                     
    Lo Chung Ping, Robert Sze Tsai To*, Chien Lee                             
    (alternate director to Lee Jung Sen), Anthony Hsien                       
    Pin Lee (alternate director to Christina Lee Look Ngan                    
    Kwan).                                                                    
                                                                              
    *  Independent non-executive directors                                    
                                                                              
    By Order of the Board                                                     
    Television Broadcasts Limited                                             
    MAK Yau Kee Adrian                                                        
    Company Secretary                                                         
    1 March 2005, Hong Kong