09:21     TVB<00511> - Announcement (1)                                       

    The Stock Exchange of Hong Kong Limited takes no                          
    responsibility for the contents of this announcement,                     
    makes no representation as to its accuracy or                             
    completeness and expressly disclaims any liability                        
    whatsoever for any loss howsoever arising from or in                      
    reliance upon the whole or any part of the contents                       
    of this announcement.                                                     
                                                                              
    Television Broadcasts Limited                                             
    (Incorporated in Hong Kong with limited liability)                        
    Stock Code: 511                                                           
                                                                              
    PROVISION OF EQUIPMENT AND SERVICES BETWEEN LYP AND                       
    ERA                                                                       
                                                                              
    CONNECTED TRANSACTION                                                     
                                                                              
    On 2 April 2004, TVB announced that LYP and ERA had                       
    entered into an agreement for the provision of                            
    satellite equipment and technical services by LYP to                      
    ERA and the provision of satellite relay program                          
    services by ERA to LYP in Taiwan. On 1 March 2005,                        
    LYP and ERA entered into an agreement to renew the                        
    arrangement on similar terms and conditions for one                       
    year from 1 January 2005 with the insertion of a new                      
    clause allowing either party to early terminate the                       
    Agreement by giving a one month notice. Under the                         
    Agreement, the monthly fees payable by ERA is                             
    NT$3,000,000 (approximately HK$750,000) while the                         
    monthly fees payable by LYP is NT$1,500,000                               
    (approximately HK$375,000).                                               
                                                                              
    As ERA is a connected person of TVB, the entry into                       
    the Agreement constituted connected transaction of                        
    TVB under the Listing Rules.                                              
                                                                              
    Details of the Agreement will be included in the next                     
    published annual report and accounts of TVB.                              
                                                                              
    THE TRANSACTION                                                           
    On 2 April 2004, Television Broadcasts Ltd. ("TVB")                       
    announced that Liann Yee Production Co., Ltd. ("LYP")                     
    and Era Communications Co., Limited ("ERA") had                           
    entered into an agreement for the provision of                            
    satellite equipment and technical services by LYP to                      
    ERA and the provision of satellite relay program                          
    services by ERA to LYP in Taiwan. This service                            
    arrangement has been in place between LYP and ERA                         
    since 28 October 2000. On 1 March 2005, the parties                       
    entered into an agreement to renew the arrangement                        
    for one year commencing from 1 January 2005 on similar                    
    terms and conditions with the insertion of a new                          
    clause allowing either party to early terminate the                       
    agreement by giving a one month notice ("the                              
    Agreement").                                                              
                                                                              
    After arm's length negotiation, LYP agrees to provide                     
    ERA with satellite equipment and technical services                       
    at a fixed fee of NT$3,000,000 (approximately                             
    HK$750,000) per month whilst ERA agrees to provide                        
    LYP with satellite relay program services at a fixed                      
    fee of NT$1,500,000 (approximately HK$375,000) per                        
    month under the Agreement. All amounts payable under                      
    the Agreement include a 5% sales tax and are payable                      
    by the payees to the government of Taiwan on a monthly                    
    basis.                                                                    
                                                                              
    The above Hong Kong dollars equivalent amounts are                        
    calculated based on the exchange rate of HK$0.25 =                        
    NT$1.                                                                     
                                                                              
    REASONS FOR THE AGREEMENT                                                 
    As the services provided by LYP and ERA are                               
    satisfactory to ERA and LYP respectively, the parties                     
    acknowledged that it would be of mutual