09:49     MELCO INT'L DEV<00200> - 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.                                
                                                                              
    Melco International Development Limited                                   
    (Incorporated in Hong Kong with limited liability)                        
    Website: http://www.melco.hk.cn                                           
    (Stock Code: 200)                                                         
                                                                              
    CONNECTED TRANSACTIONS                                                    
                                                                              
    SUMMARY                                                                   
    The Directors are pleased to announce that on 13th April 2005,            
    Elixir, an indirect wholly-owned subsidiary of the Company,               
    has entered into the Service Arrangements on a conditional                
    basis with each of SJM and Mocha respectively, pursuant to                
    which Elixir shall provide to each of SJM and Mocha such                  
    Services comprising System Integration Services for an                    
    aggregate value of about HK$48.18 million and HK$22.61                    
    million respectively and Maintenance Services for the                     
    aggregate value of about HK$2.75 million and HK$0.6 million               
    respectively.                                                             
                                                                              
    SJM, being a subsidiary of STDM, is a connected person of                 
    the Company for the purpose of the Listing Rules by reason                
    of the fact that Dr. Stanley Ho, who is the Chairman and                  
    Executive Director of the Company, has an equity interest                 
    in, as well as being a director of STDM, parent company of                
    SJM. Also, Mocha, being a subsidiary of the Company, is a                 
    connected person of the Company for the purpose of the Listing            
    Rules by reason of the fact that Dr. Stanley Ho has an equity             
    interest in, as well as being a director of, Mocha. As a result,          
    each of the SJM Service Arrangement and the Mocha Service                 
    Arrangement constitutes a non-exempt connected transaction                
    of the Company under Rule 14A.16(5) of the Listing Rules (by              
    virtue of the fact that the revenue ratio in each case is                 
    more than 2.5% but less than 25% and the total amount payable             
    by SJM or Mocha (as the case may be) for the Services exceeds             
    HK$10,000,000) and is subject to the requirements of                      
    reporting, announcement and approval by the Independent                   
    Shareholders (by way of poll) at the EGM as set out in Chapter            
    14A of the Listing Rules.                                                 
                                                                              
    Dr. Stanley Ho, who beneficially owns 3.085% shareholding                 
    interest in the Company, and his associates will abstain from             
    voting on the relevant resolution(s) regarding the Service                
    Arrangements and the transactions contemplated thereunder                 
    at the EGM.                                                               
                                                                              
    A circular containing, among other things, (i) further                    
    information on the Service Arrangements; (ii) the                         
    recommendation from the independent board committee of the                
    Company; (iii) a letter of advice from the independent                    
    financial adviser to the independent board committee of the               
    Company; and (iv) a notice of the EGM will be dispatched to               
    the Shareholders within 21 days from the date of this                     
    announcement.                                                             
                                                                              
    BACKGROUND                                                                
    Elixir and EGL are wholly-owned subsidiaries of the Company.              
                                                                              
    Since its inception in July 2002, the Elixir Group has been               
    engaged in the business of system integration and supply and              
    provision of various software systems and hardware equipment              
    as well as information technology services to clients                     
    predominately in Macau and the Pearl River Delta Area of the              
    PRC. Its clients include companies and enterprises from a                 
    wide range of industries such as gaming, retail,                          
    entertainment, hospitality as well as banking and finance.                
    The business relationship between the Elixir Group and SJM                
    commenced in January 2003 and during the years 2003 and 2004,             
    EGL has altogether entered into four separate service                     
    arrangements with SJM for the provision of information                    
    technology related services to SJM.