09:52     MELCO INT'L DEV<00200> - Announcement (7)                           

    "Elixir"   Elixir Group (Macau) Limited, a company                        
    incorporated in Macau with limited liability on 29th July                 
    2002 and an indirect wholly-owned subsidiary of the Company               
                                                                              
    "Elixir Group"   EGL and Elixir                                           
                                                                              
    "Group"   the Company and its subsidiaries                                
                                                                              
    "Hong Kong"   the Hong Kong Special Administrative Region                 
    of the People's Republic of China                                         
                                                                              
    "HK$"   Hong Kong dollars, the lawful currency of Hong Kong               
                                                                              
    "Independent Board Committee"   an independent committee of               
    the Board to be appointed by the Directors to advise the                  
    Independent Shareholders in respect of the Service                        
    Arrangement and all transactions contemplated thereunder                  
                                                                              
    "Independent Shareholders"   shareholders of the Company                  
    other than Dr. Stanley Ho and his associates, Madam Lucina                
    Laam King Ying, Mr. Lawrence Ho, Lasting Legend Limited and               
    Better Joy Overseas Ltd.                                                  
                                                                              
    "Listing Rules"   The Rules Governing the Listing of                      
    Securities on the Stock Exchange                                          
                                                                              
    "Macau"   the Macau Special Administrative Region of the                  
    People's Republic of China                                                
                                                                              
    "Maintenance Services"   after sales services to be provided              
    by Elixir including rectification of any error and provision              
    of spare parts, if necessary, for the relevant hardware                   
    systems and equipment provided under the Service                          
    Arrangements                                                              
                                                                              
    "Mocha"   Mocha Slot Group Limited, a company incorporated                
    under the laws of British Virgin Islands and the equity                   
    interests in which are held as to 80% by Melco Entertainment              
    Limited, a subsidiary of the Company, and 20% by Dr. Stanley              
    Ho                                                                        
                                                                              
    "Mocha Service Arrangement"   the service arrangement                     
    comprising three separate agreements, entered into between                
    Elixir and Mocha, all dated 13th April 2005, regarding the                
    respective provision of: (i) System Integration Services and              
    Maintenance Services for the digital surveillance camera                  
    system; (ii) System Integration Services for the finger                   
    print access control system; and (iii) System Integration                 
    Services for the electronic gaming machines, by Elixir to                 
    Mocha                                                                     
                                                                              
    "Mr. Lawrence Ho"   Mr. Ho, Lawrence Yau Lung, the Managing               
    Director and Executive Director of the Company and son of                 
    Dr. Stanley Ho                                                            
                                                                              
    "PRC"   The People's Republic of China                                    
                                                                              
    "Services"   the System Integration Services and the                      
    Maintenance Services                                                      
                                                                              
    "Service Arrangements"   the SJM Service Arrangement and the              
    Mocha Service Arrangement                                                 
                                                                              
    "Shareholders"   shareholders of the Company                              
                                                                              
    "SJM"   Sociedade de Jogos de Macau, S.A., a company                      
    incorporated under the laws of Macau                                      
                                                                              
    "SJM Service Arrangement"   the service arrangement                       
    comprising three separate agreements, entered into between                
    Elixir and SJM, all dated 13th April 2005, regarding the                  
    respective provision of: (i) System Integration Services and              
    Maintenance Services for the digital surveillance camera                  
    system; (ii) System Integration Services for the finger                   
    print access control system; and (iii) System Integration                 
    Services for the electronic gaming machines, by Elixir to                 
    SJM                                                                       
                                                                              
    "STDM"   Sociedade de Turismo e Diversoes de Macau, S.A.R.L.              
    a company incorporated under the laws of Macau                            
                                                                              
    "Stock Exchange"   The Stock Exchange of Hong Kong Limited