11:01     TVB<00511> - Announcement (4)                                       

    The Agreements (except for the provision of                               
    management services) are renewals of agreements                           
    previously entered into between various companies of                      
    the Group and MBNS in 2002. As the TVB8, Xing He and                      
    TVBS-Asia channels are channels compiled for overseas                     
    markets and already distributed to various countries                      
    and the programmes which are licensed to MBNS are from                    
    the existing TVB programme library or programmes                          
    co-produced by TVB for worldwide distribution, the                        
    entry into the licensing agreements will enable the                       
    Group to generate more income with minimal increase                       
    in overheads and the brand names of "TVB", "TVB8",                        
    "Xing He" and "TVBS-Asia" would enjoy continuous                          
    exposure in Malaysia and Brunei and hence strengthen                      
    their market position. As for the agreements for the                      
    provision of management services and advertising                          
    sales services, they are able to generate additional                      
    revenue for the Group.                                                    
                                                                              
    The Directors considered that the terms of the                            
    Agreements and the transactions contemplated                              
    thereunder are fair and reasonable and are in the                         
    interests of TVB and the Shareholders as a whole and                      
    the Agreements have been entered into in the ordinary                     
    and usual course of business and on normal commercial                     
    terms.                                                                    
                                                                              
    PRINCIPAL ACTIVITIES OF THE GROUP, LYP, TVBI, TVBSB,                      
    TVBSE, TVBOF AND MBNS                                                     
    The Group is principally engaged in television                            
    broadcasting, programme licensing and production,                         
    animation production, magazine publishing and other                       
    broadcasting related activities.                                          
                                                                              
    LYP (a 70% indirect non wholly-owned subsidiary of                        
    TVB) is principally engaged in the business of                            
    television programmes production, television channel                      
    transmission and operation in Taiwan.                                     
                                                                              
    TVBI is principally engaged in programme licensing.                       
                                                                              
    TVBSB is principally engaged in the provision of                          
    management services, programme scheduling and                             
    television broadcasting services.                                         
                                                                              
    TVBSE is principally engaged in the operation of                          
    television channels and provision of advertising                          
    sales services.                                                           
                                                                              
    TVBOF is principally engaged in the provision of                          
    management services, facilities and materials.                            
                                                                              
    MBNS is the sole licensed provider of digital                             
    direct-to-home satellite multi-channel television                         
    services in Malaysia under the Astro brand name. MBNS                     
    has licensed one of its affiliates for distribution                       
    of the multi-channel television service in Brunei.                        
                                                                              
    IMPLICATIONS UNDER THE LISTING RULES                                      
    MBNS is a wholly-owned indirect subsidiary of ASTRO                       
    ALL ASIA NETWORKS plc. which has indirect                                 
    shareholding interests in two indirectly owned                            
    subsidiaries of TVB, being approximately 35.7% of the                     
    issued share capital of Hsin Chi Broadcast Company                        
    Limited and approximately 26.3% of the voting shares                      
    of TVB Publishing Holding Limited while TVB has                           
    indirect shareholding of approximately 40% in Hsin                        
    Chi Broadcast Company Limited and approximately 73.7%                     
    of the voting shares in TVB Publishing Holding Limited.                   
    MBNS is accordingly an associate of a connected person                    
    of TVB as defined in Rule 1.01 of the Listing Rules                       
    and the Agreements and the transactions