09:50     MELCO INT'L DEV<00200> - Announcement (2)                           

    Given that the Elixir Group has demonstrated its quality of               
    works and services provided under the said previous service               
    arrangements and established a good business relationship                 
    with SJM, the Directors are pleased to announce that on 13th              
    April 2005, Elixir has entered into another service                       
    arrangement, namely, the SJM Service Arrangement, with SJM                
    for the provision of System Integration Services and                      
    Maintenance Services for the aggregate values of about                    
    HK$48.18 million and HK$2.75 million respectively. In                     
    addition, the Directors are pleased to announce that on 13th              
    April 2005, Elixir has also entered into the Mocha Service                
    Arrangement with Mocha for the provision of System                        
    Integration Services and Maintenance Services for the                     
    aggregate values of about HK$22.61 million and HK$0.6                     
    million respectively.                                                     
                                                                              
    THE SERVICE ARRANGEMENTS                                                  
    1.   SJM Service Arrangement                                              
    Date   :   13th April 2005                                                
                                                                              
    Parties   :   i.   Elixir                                                 
                                                                              
       ii.   SJM                                                              
                                                                              
    Information technology related services to be provided under              
    the SJM Service Arrangement                                               
    Pursuant to the SJM Service Arrangement, Elixir will provide              
    to SJM such Services comprising:                                          
                                                                              
    1.   System Integration Services including the liaison with,              
    and procurement of other hardware and software suppliers to               
    develop, provide and install the real-time on-line                        
    transmission and monitoring security systems, such as the                 
    digital surveillance camera system, the finger print access               
    control system as well as the gaming systems such as the                  
    electronic gaming machines together with the design and                   
    provision of information technology expertise to ameliorate               
    the computer facilities and equipment of SJM; and                         
                                                                              
    2.   Maintenance Services including the continuing                        
    maintenance and support services, such as rectification of                
    any error and provision of spare parts, if necessary, for                 
    a number of hardware systems and equipment provided under                 
    the Service Arrangements. The Maintenance Services are for                
    a term of one year commencing from the expiration of the three            
    months' free warranty period provided by Elixir after                     
    completion of installation and the acceptance test on the                 
    relevant systems and equipment.                                           
                                                                              
    Consideration                                                             
    The consideration payable by SJM under the SJM Service                    
    Arrangement was determined by arm's length negotiations                   
    between the parties thereto. Pursuant to the terms of the                 
    SJM Service Arrangement, the aggregate service charge for                 
    the System Integration Services is about HK$48.18 million                 
    (as to about HK$31.42 million for digital surveillance                    
    camera system, as to about HK$0.074 million for the finger                
    print access control system and as to about HK$16.69 million              
    for the electronic gaming machines). Such aggregate service               
    charge is determined with reference to the estimated market               
    costs of (i) the relevant hardware systems and equipment;                 
    and (ii) the manpower to be incurred by Elixir for installing             
    the same and provision of the related technical services to               
    SJM. Elixir will ascertain the relevant hardware systems and              
    equipment and manpower required to provide the relevant                   
    System Integration Services to SJM upon receiving its orders              
    and arrange to purchase the required hardware systems and                 
    equipment from the vendors. The aggregate service charges                 
    of the System Integration Services will then be calculated                
    based on the required hardware systems and equipment (with                
    a mark up on the costs charged by the vendors, the rate of                
    such mark up is comparable with the rate that Elixir normally             
    adopts in dealings with other independent customers),                     
    installation charges and other service charges payable. As                
    for the Maintenance Services for the digital surveillance                 
    camera system, the aggregate service charge is about HK$2.75              
    million and was determined with reference to the estimated                
    market costs of (i) the estimated number of spare parts that              
    requires for maintaining the relevant hardware systems and                
    equipment and (ii) the resources to be incurred by Elixir                 
    during the relevant agreed service period. The aggregate                  
    service charge for the System Integration Services to be                  
    provided by Elixir to SJM is comparable to the market rate                
    and charge to other customers of Elixir.