09:40     PCPD<00432> - Announcement (2)                                      

    REQUIREMENTS OF THE LISTING RULES                                         
                                                                              
    PCCW is a substantial shareholder of the Company. PCCW and its            
    subsidiaries are therefore connected persons of the Company under the     
    Listing Rules. The Transaction therefore constitutes a connected          
    transaction of the Company under Chapter 14A of the Listing Rules.        
                                                                              
    Pursuant to Rule 14A.25 of the Listing Rules the Stock Exchange has       
    required the aggregation of certain transactions between the Group        
    and the PCCW Group that were entered into within the preceding 12         
    months. As the PCCW Group only became connected persons of the            
    Company on 10 May 2004 following the completion of the acquisition by     
    the Group of certain property interests of PCCW, only transactions        
    between the two groups that were entered into after 10 May 2004 have      
    to be aggregated. As a result, the Transaction has to be aggregated       
    with all relevant transactions between the two groups as described        
    above, a summary of which is set out below.                               
                                                                              
    As the relevant percentage ratios under the Listing Rules for the         
    Transaction, when aggregated in the manner described above, are less      
    than 2.5 per cent., the Transaction is only subject to the reporting      
    and announcement requirements set out in Rules 14A.45 to 14A.47 of        
    the Listing Rules and is exempt from the independent shareholders'        
    approval requirements under Chapter 14A of the Listing Rules. Details     
    of the Transaction were included in the annual report of the Company.     
                                                                              
    The Stock Exchange is of the view that disclosure of the Transaction      
    should have been made at the time work under it commenced or upon         
    award of contract, rather than at the time the formal contract was        
    entered into. The Stock Exchange reserves its right to take actions       
    against the Company and/or the Directors.                                 
                                                                              
    PAST TRANSACTIONS REQUIRING DISCLOSURE AS A RESULT OF AGGREGATION         
                                                                              
    Set out below is a summary of the transactions (other than the            
    Transaction) entered into between the Group and the PCCW Group            
    relating to the Cyberport project during the period from 10 May 2004      
    up to the date of this announcement. Each of such transactions was        
    exempt from any announcement requirements under the Listing Rules but     
    announcement of them became necessary following the requirement of        
    the Stock Exchange to aggregate them and the Transaction pursuant to      
    Rule 14A.25.                                                              
                                                                              
    (1)             Date of         :               20 September              
                    commencement                    2004                      
                    of                                                        
                    work                                                      
                    Parties         :                (i) CPL; and             
                                                    (ii) Unihub               
                                                    Limited                   
                                                    (`Unihub'), a             
                                                    wholly-owned              
                                                    subsidiary of             
                                                    PCCW                      
                    Purpose         :               The design and            
                                                    build of a                
                                                    home portal               
                                                    system by                 
                                                    Unihub for the            
                                                    residential               
                                                    portion of the            
                                                    Cyberport                 
                                                    project                   
                    Consideration   :               HK$1,113,882              
    (2)             Date of         :               12 October                
                    agreement                       2004                      
                    Parties         :                (i) CPL; and             
                                                    (ii) PTSL                 
                    Purpose         :               The supply by             
                                                    PTSL of                   
                                                    audio-visual              
                                                    equipment for             
                                                    the control               
                                                    room of The               
                                                    Arcade at                 
                                                    Cyberport                 
                    Consideration   :               HK$3,770,957              
    (3)             Date of         :               25 November               
                    commencement                    2004                      
                    of                                                        
                    work                                                      
                    Parties         :                (i) CPML; and            
                                                     (ii) PCCW-HKT            
                                                    Business                  
                                                    Services                  
                                                    Limited                   
                                                    (`PBSL'), a               
                                                    wholly-owned              
                                                    subsidiary of             
                                                    PCCW<eb;normal            
                    Purpose         :               Alteration and            
                                                    addition works            
                                                    for the                   
                                                    re-wiring of              
                                                    telephone