10:56     I-CABLE COMM<01097> - Announcement (2)                              

                                                                              
    Annual Cap:  The parties have estimated that the total aggregate          
    annual service fees payable by WTT to, or receivable by WTT from,         
    HKC and iWL under the Agreement will not exceed an amount ranging         
    from HK$33.1 million to HK$50 million, such amounts being determined,     
    or estimated on an upside scenario, by reference to, inter alia,          
    previous sales figures which were recorded by the i-CABLE Group and       
    WTT or the Wharf Group in recent years and reflected in their             
    respective published information.  The parties have thus agreed that      
    the aggregate annual service fees payable or receivable, whichever        
    is the higher, by WTT to or from (as the case may be) HKC and iWL         
    under the Agreement for each of the years ending 31st December, 2005,     
    31st December, 2006 and 31st December, 2007 must not exceed HK$33.1       
    million, HK$47 million and HK$50 million respectively (the "Annual        
    Cap(s)").                                                                 
                                                                              
    REASONS FOR AND BENEFITS OF ENTERING INTO THE AGREEMENT                   
                                                                              
    The principal business activities of the i-CABLE Group are the            
    ownership and operation of advanced broadband distribution                
    infrastructure, creation of multimedia contents and the provision of      
    television and Internet services.  WTT, a fixed telecommunications        
    network operator in Hong Kong, is a member of the Wharf Group whose       
    principal activities are ownership of properties for letting,             
    property development and investment, container terminals and              
    communications, media and entertainment.                                  
                                                                              
    The three parties believe the Agreement will enable each of them to       
    leverage their marketing and sales infrastructure to increase sale        
    acquisition of their products through cross selling.  The three           
    parties also expect the arrangement would enhance customer                
    satisfaction and loyalty and generate operation and cost                  
    efficiencies.                                                             
                                                                              
    The directors, including independent non-executive directors, of          
    i-CABLE  are of the opinion that the terms of the Agreement               
    (including the Annual Caps) are on normal commercial terms with           
    reference to the prevailing market conditions, are fair and               
    reasonable and are in the commercial interests of the i-CABLE             
    Group and its shareholders.  The transaction is entered into in the       
    ordinary course of business of HKC and iWL after due negotiations         
    on an arm's length basis with reference to the prevailing market          
    conditions.                                                               
                                                                              
    REGULATORY ASPECTS                                                        
                                                                              
    Since i-CABLE is a 67%-owned subsidiary of Wharf, the transaction         
    constitutes a continuing connected transaction for i-CABLE under          
    the Listing Rules.  As each of the Annual Caps is less than 2.5% of       
    the applicable percentage ratios for i-CABLE, no independent              
    shareholders' approval is required for this continuing connected          
    transaction.                                                              
                                                                              
    If during the term of the Agreement, the aggregate annual service         
    fees paid/payable or received/receivable by the i-CABLE Group to or       
    from WTT in each financial year of i-CABLE exceed the relevant Annual     
    Cap, or there is a material change to the terms of the Agreement,         
    i-CABLE will take necessary steps to ensure compliance with the           
    Listing Rules.                                                            
                                                                              
    Particulars of the transaction will be disclosed in the annual            
    reports and accounts of i-CABLE for each of the relevant financial        
    years in accordance with Rule 14A.46 of the Listing Rules.                
                                                                              
    As at the date of this announcement, the board of directors of            
    i-CABLE comprises Mr. Stephen T. H. Ng, Mr. F. K. Hu, Mr. Quinn           
    Y. K. Law, Mr. Victor C. W. Lo, Dr. Dennis T. L. Sun, Mr. Samuel          
    S. F. Wong, Sir Gordon Y. S. Wu and Mr. Anthony K. K. Yeung.              
                                                                              
    By Order of the Directors                                                 
    i-CABLE COMMUNICATIONS LIMITED                                            
    Wilson W. S. Chan                                                         
    Company Secretary                                                         
                                                                              
    Hong Kong, 7th April, 2005