10:47     MELCO INT'L DEV<00200> - Announcement & Resumption (9)              

    Information on Melco Entertainment and the Hospitability Business         
    Melco Entertainment is a non wholly-owned subsidiary of Melco             
    within the JV Group and is the immediate holding company of 70%           
    equity interests in Great Wonders as at the date of this                  
    announcement. The Hospitality Business is concerned with the              
    business pursued or to be pursued by Great Wonders, which has             
    applied for the concession of the Land, for developing a luxury           
    hotel housing a casino and an electronic gaming machine lounge.           
    It is contemplated that upon completion of the hotel, the casino          
    will be operated by SJM and the electronic gaming machine lounge          
    will be managed by Mocha Slot (subject to the approvals of the Macau      
    government authorities). On 11 November 2004, SJM issued a Letter         
    of Confirmation to Great Wonders (which was counter-signed by Great       
    Wonders), regarding a confirmation given by SJM to enter into the         
    Proposed Lease Agreement upon (i) the successful grant of the             
    concession of the Land to Great Wonders and (ii) obtaining of the         
    relevant approvals by SJM from the Macau government authorities,          
    in respect of a proposed lease by SJM from Great Wonders for an           
    area of approximately 18,000 square meters at the hotel to be             
    developed on the Land for the purpose of operating a casino with          
    not less than 160 gaming tables. According to the Letter of               
    Confirmation and subject to the terms of the Proposed Lease               
    Agreement, the expected duration of the lease shall be a period           
    from the commencement of business of the hotel to the expiry of           
    SJM's concession to operate casinos in Macau on 31 March 2020 and         
    as the proposed monthly rental, Great Wonders shall receive an            
    amount equal to the aggregate of (i) 40% of the gross monthly             
    revenue generated from 60 gaming tables and (ii) such percentage          
    to be further agreed between SJM and Great Wonders (but in any case       
    not less than 30%) of the gross monthly revenue generated from the        
    remaining gaming tables. To the best of Melco's knowledge and             
    belief, the Letter of Confirmation is a validly binding document          
    between Melco and SJM. Save as disclosed above and since the hotel        
    has not been developed, no concrete term of the Proposed Lease            
    Agreement has been reached between Melco and SJM as at the date           
    of this announcement.                                                     
                                                                              
    SJM is a company incorporated under the laws of Macau and is              
    majority owned by STDM with Dr. Stanley Ho as its managing director.      
    SJM has been selected by the Macau government authorities as one          
    of the three concessionaries to engage in casino gaming operations        
    in Macau from 1 April 2002 to 31 March 2020. By reason of the fact        
    that Dr. Stanley Ho, who is the Chairman and Executive Director           
    of Melco, has an equity interest in, as well as being a director          
    of, SJM and STDM respectively, SJM is considered as a connected           
    person under the Listing Rules. Accordingly, upon (i) completion          
    of the hotel development on the Land and (ii) fulfillment of the          
    conditions as set out in the Letter of Confirmation, namely, the          
    successful grant of the concession of the Land to Great Wonders           
    and obtaining of the relevant approvals by SJM from the Macau             
    government authorities, the proposed execution of the Proposed            
    Lease Agreement may constitute a possible non-exempt continuing           
    connected transaction of Melco under Chapter 14A of the Listing           
    Rules and if such circumstances arise, Melco will comply with the         
    relevant requirements of the Listing Rules as to reporting,               
    announcement and the Independent Shareholders' approval (by way           
    of poll) (as the case may be).                                            
                                                                              
    Information on Great Wonders                                              
    Great Wonders was a company initially established by STDM on 15           
    September 2004 pursuant to the First Agreement. As a result of the        
    completions of the First Agreement and the Second Agreement and           
    the formation of the JV Group pursuant to the Subscription                
    Agreement, Great Wonders became a non wholly-owned subsidiary of          
    Melco within the JV Group and in which Melco has an attributable          
    interests of 42% (which will be increased to 60% subject to the           
    completions of the Third Agreement and the Great Wonders Agreement.)      
    Currently, except for applying the concession of the Land for             
    developing a luxury hotel and the signing of the Letter of                
    Confirmation with SJM, Great Wonders does not carry out any other         
    business and thus it does not have any contribution to the Group.         
    Also, as the concession of the Land has not yet been granted, Great       
    Wonders only has a net asset value of MOP$ 1 million (equivalent          
    to approximately HK$0.97 million) representing its issued share           
    capital as at the date of this announcement. Subject to the grant         
    of the concession of the Land by the Macau Government, the sole           
    asset of Great Wonders will be the Land.