10:08     MELCO INT'L DEV<00200> - Announcement (2)                           

    Convertible securities                                                    
    As at the date of this announcement, there are no outstanding             
    options, warrants or securities convertible or exchangeable               
    into Shares other than the following:                                     
                                                                              
    (i)   16,306 Options carrying rights to subscribe for 16,306              
    Shares at an exercise price of HK$1.00 per Share;                         
                                                                              
    (ii)   4,177,670 Options carrying rights to subscribe for                 
    4,177,670 Shares at an exercise price of HK$1.1067 per Share;             
                                                                              
    (iii)   9,032,000 Options carrying rights to subscribe for                
    9,032,000 Shares at an exercise price of HK$2.405 per Share;              
                                                                              
    (iv)   6,034,000 Options carrying rights to subscribe for                 
    6,034,000 Shares at an exercise price of HK$3.375 per Share;              
                                                                              
    (v)   1,029,700 Options carrying rights to subscribe for                  
    1,029,700 Shares at an exercise price of HK$14.8 per Share;               
                                                                              
    (vi)   Better Joy First Convertible Note in the principal                 
    amount of HK$22,500,000 carrying rights to subscribe for                  
    9,782,608 Shares at a conversion price of HK$2.30 per Share at            
    any time on or before 29 June 2005;                                       
                                                                              
    (vii)   Better Joy Second Convertible Note in the principal               
    amount of HK$22,500,000 carrying rights to subscribe for                  
    9,782,608 Shares at a conversion price of HK$2.30 per Share at            
    any time on or before 29 June 2006;                                       
                                                                              
    (viii)   STDM First Convertible Note in the principal amount              
    of HK$100,000,000 carrying rights to subscribe for 25,000,000             
    Shares at a conversion price of HK$4.00 per Share at any time             
    from the third anniversary of the date of issue of the First              
    STDM Convertible Note, namely, 9 November 2004, to 8 November             
    2009; and                                                                 
                                                                              
    (ix)   STDM Second Convertible Note in the principal amount of            
    HK$56,000,000 carrying rights to subscribe for 6,829,268                  
    Shares at a conversion price of HK$8.20 per Share at any time             
    from the third anniversary of the date of issue of the Second             
    STDM Convertible Note, namely, 8 February 2005, to 7 February             
    2010.                                                                     
                                                                              
    The terms of the outstanding Options granted by Melco pursuant            
    to the Share Option Scheme will be adjusted in such manner as             
    Melco's auditors shall certify to the Board is, in their                  
    opinion, fair and reasonable to take account of the Share                 
    Subdivision. The Board anticipates that upon the Share                    
    Subdivision becoming effective, the terms of such outstanding             
    Options will be adjusted as follows:                                      
                                                                              
    Outstanding Options                                                       
                                                                              
    Exercise price before the Share Subdivision (HK$)                         
                                                                              
    Number of Shares to be issued                                             
                                                                              
    Exercise price after the Share Subdivision (HK$)                          
                                                                              
    Number of Subdivided Shares to be issued                                  
                                                                              
    As mentioned in (i) above   1.00   16,306   0.50   32,612                 
    As mentioned in (ii) above   1.1067   4,177,670   0.55335                 
    8,355,340                                                                 
    As mentioned in (iii) above   2.405   9,032,000   1.2025                  
    18,064,000                                                                
    As mentioned in (iv) above   3.375   6,034,000   1.6875                   
    12,068,000                                                                
    As mentioned in (v) above   14.8   1,029,700   7.4   2,059,400            
                                                                              
    The Share Subdivision constitutes an event giving rise to an              
    adjustment to the respective conversion prices of the                     
    Convertible Notes pursuant to the respective instruments                  
    constituting the Convertible Notes. Upon the Share Subdivision            
    becoming effective, the terms of the respective Convertible               
    Notes will be adjusted as follows:                                        
                                                                              
    Convertible Notes                                                         
                                                                              
    Conversion price before the Share Subdivision (HK$)                       
                                                                              
    Number of Shares to be issued                                             
                                                                              
    Conversion price after the Share Subdivision (HK$)