10:21     TVB<00511> - Announcement (6)                                       

    consolidated balance sheet of the Group on the basis                      
    that this shareholding was only temporary, given the                      
    requirement to comply with the condition under the                        
    Company's domestic free television programme service                      
    licence that the Company's total voting control in                        
    Galaxy Broadcasting be less than 50%.                                     
                                                                              
    On disposal of the Sale Shares, the Group would record                    
    a profit on disposal amounting to approximately                           
    HK$149 million, being the consideration receivable                        
    by the Company from the Sale less the costs of the                        
    Sale Shares shown in the Group's latest published                         
    audited financial statements for the year 31 December                     
    2004 which includes the carrying value of such Shares.                    
    After the Sale, the Group shall continue to account                       
    for the 49% shareholding in Galaxy as an associate                        
    in the consolidated profit and loss account of the                        
    Group, and the consolidated balance sheet will                            
    continue to include the Group's share of the net                          
    assets of the associate. Galaxy will cease to be a                        
    subsidiary of the Group for the purchase of the                           
    Companies Ordinance.                                                      
                                                                              
    It is the Group's intention to hold the 49%                               
    shareholding interest in Galaxy for the long term.                        
                                                                              
    It is the intention of the Group to use all of the                        
    proceeds from the Sale towards the capital injections                     
    referred to in the paragraph headed "Capital                              
    Injections" above. Neither Enjoy Profits nor Dr. Chan                     
    (or the Nominee (as appropriate)) is required to make                     
    any additional capital injection into Galaxy.                             
                                                                              
    Reasons for the Sale                                                      
    As a result of the Sale, the Company is able to satisfy                   
    the shareholding condition imposed by the Hong Kong                       
    Government under its domestic free television                             
    programme service licence referred to in the                              
    paragraph headed "Impact on the Group" above. The                         
    directors of the Company believe that the Agreement                       
    represents a good opportunity for the Group to                            
    establish a strategic alliance with Ruili and Dr. Chan,                   
    both of which have experience in the multi-media                          
    business, in furthering in the pay television                             
    business in Hong Kong and that Galaxy represents an                       
    attractive investment opportunity with strong growth                      
    potential and is in the interests of the Company and                      
    its shareholders.                                                         
                                                                              
    Information and Principal Activities of the Company,                      
    TVB Satellite, Galaxy Broadcasting, Galaxy, Enjoy                         
    Profits and Dr. Chan                                                      
    The Company is principally engaged in television                          
    broadcasting, programme production and other                              
    broadcasting related activities.                                          
                                                                              
    TVB Satellite, a company incorporated in Bermuda with                     
    limited liability on 29 March 1995 and a wholly-owned                     
    subsidiary of the Company, is an investment holding                       
    company.                                                                  
                                                                              
    Dr. Chan is the Chairman of ITC Corporation Limited,                      
    which shares are listed on the main board of The Stock                    
    Exchange of Hong Kong Limited.                                            
                                                                              
    Enjoy Profits Limited is an investment company                            
    incorporated with limited liability in the British                        
    Virgin Islands and a wholly-owned subsidiary of Ruili.                    
    Ruili is a company whose shares are listed on the Main                    
    Board of The Stock Exchange of Hong Kong Limited.                         
    Ruili, together with its subsidiaries, is principally                     
    engaged in trading in digital cameras, games,                             
    multimedia electronic products and