09:51     MELCO INT'L DEV<00200> - Announcement (4)                           

    Consideration                                                             
    The consideration payable by Mocha under the Mocha Service                
    Arrangement was determined by arm's length negotiations                   
    between the parties thereto. Pursuant to the terms of the                 
    Mocha Service Arrangement, the aggregate service charge for               
    the System Integration Services is about HK$22.61 million                 
    (as to about HK$2.08 million for digital surveillance camera              
    system, as to about HK$3.31 million for the finger print                  
    access control system and as to about HK$17.22 million for                
    the electronic gaming machines). Such aggregate service                   
    charge was 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               
    Mocha. Elixir will ascertain the relevant hardware systems                
    and equipment and manpower required to provide the relevant               
    System Integration Services to Mocha 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 and the electronic gaming                      
    machines, the aggregate service charge is about HK$0.6                    
    million. As for the Maintenance Services for the digital                  
    surveillance camera system, the aggregate service charge is               
    about HK$0.12 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. As for the Maintenance Services for the electronic                
    gaming machines, the aggregate service charge is about                    
    HK$0.48 million and was determined by the relevant supplier               
    supplying the relevant systems. The aggregate service charge              
    for the System Integration Services to be provided by Elixir              
    to Mocha is comparable to the market rate and charge to other             
    customers of Elixir.                                                      
                                                                              
    Payment terms                                                             
    Subject to the terms and conditions of the Mocha Service                  
    Arrangement, Mocha shall pay:                                             
                                                                              
    (i)   an initial amount of about HK$1.04 million                          
    representing 50% of the relevant service charge in relation               
    to the System Integration Services for the digital                        
    surveillance camera system upon entering into the Mocha                   
    Service Arrangement. The balance of the relevant service                  
    charge will be payable by three installments of amounts                   
    equivalent to 30%, 10% and 10% thereof upon (a) the date of               
    delivery of the relevant system, (b) the date of completion               
    of installation and acceptance test on such system and (c)                
    the expiry date of the three month free warranty period after             
    completion of the acceptance test respectively. According                 
    to the terms and conditions of the Mocha Service Arrangement,             
    these three milestone dates are expected to take place in                 
    around mid May 2005, early June 2005 and early September 2005             
    respectively;                                                             
                                                                              
    (ii)   the full amount of about HK$3.31 million in respect                
    of the System Integration Services for the finger print                   
    access control system upon the date of delivery of the                    
    relevant system, which is expected to be around mid May 2005;             
                                                                              
    (iii)   an initial amount of about HK$8.61 million                        
    representing 50% of the relevant service charge in relation               
    to the System Integration Services for the electronic gaming              
    machines upon entering into the Mocha Service Arrangement                 
    with the remaining 50% thereof to be paid upon the date of                
    delivery, which is expected to be around mid May 2005;                    
                                                                              
    (iv)   the amount of about HK$0.12 million for the                        
    Maintenance Services for the digital surveillance camera                  
    system upon the expiration of the three months' free warranty             
    period, which is expected to be around early September 2005;              
    and                                                                       
                                                                              
    (v)   the initial amount of about HK$0.24 million                         
    representing 50% for the Maintenance Services for the                     
    electronic gaming machines upon subscription of the                       
    maintenance services by Mocha with the remaining 50% thereof              
    to be paid 15 days after the date of delivery, which is                   
    expected to be around early June 2005.