09:40 PCPD<00432> - 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. PACIFIC CENTURY PREMIUM DEVELOPMENTS LIMITED (Incorporated in Bermuda with limited liability) (Stock Code: 432) CONNECTED TRANSACTIONS The Directors announce that a wholly-owned subsidiary of the Company has entered into a contract for the supply and installation of LED Display Systems for The Arcade at Cyberport with a wholly-owned subsidiary of PCCW. PCCW is a substantial shareholder of the Company and therefore it and its subsidiaries are connected persons of the Company under the Listing Rules. The Transaction constitutes a connected transaction of the Company and is subject to the reporting and announcement requirements but is exempt from the independent shareholders' approval requirements under 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 after 10 May 2004. 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. The Directors announce that a wholly-owned subsidiary of the Company have entered into a contract for the supply and installation of two indoor light emitting diode (LED) display devices that enable the display of video content in various format from terrestrial or satellite television, live video streams, pre-recorded video messages and other ad-hoc video sources at two locations in The Arcade at Cyberport (the `Transaction') with a wholly-owned subsidiary of PCCW. Details of the Transaction are set out below. Date of agreement: 20 April 2005 Parties: (i) CPL as the employer; and (ii) PCCW-HKT Technical Services Limited (`PTSL'), a wholly-owned subsidiary of PCCW, as the contractor Purpose: PTSL will design, supply, install, test and commission, and provide training for the use of, the LED Display Systems for The Arcade at Cyberport Consideration: HK$6,824,350. The consideration was submitted by PTSL under an open tender process. Award of contract: The invitation to tender was issued on 16 April 2004 and the tender period closed on 27 April 2004. The contract was awarded on 29 June 2004. Commencement of work: 24 June 2004 Defects liability period: 15 months from acceptance of the system by CPL REASONS FOR AND THE BENEFITS OF THE TRANSACTION AND VIEWS OF THE DIRECTORS PTSL had been selected as the counterparty of the Transaction through an open tender process and on the recommendation of independent consultants. The bases of selection included pricing, compliance with specifications and track record. The Transaction had also been approved by FSI Holdings, the Company's partner in the development and management of Cyberport. The Directors (including the independent non-executive Directors) consider that the Transaction was entered into in the usual and ordinary course of business of the Company. They also consider that the Transaction had been negotiated and was conducted on an arm's length basis between the parties and are on normal commercial terms. The terms for the Transaction (including consideration) were no less favourable to the Group than those required by independent third parties with reference to prevailing market rates. The Directors (including the independent non-executive Directors) are of the view that the terms of the Transaction are fair and reasonable and in the interests of the shareholders of the Company as a whole.