10:58     PCCW<00008> - Announcement (3)                                      

    year before                                                               
    cumulative                                                                
    effect of a                                                               
    change in                                                                 
    accounting                                                                
    principle                                                                 
    Net loss        (291.75) cents  (152.18) cents  (1,120.19)                
                                                    cents                     
    Loss per ADS                                                              
    under US                                                                  
    GAAP*                                                                     
    Basic                                                                     
    Loss for the    (2,917.51)      (1,521.79)      (1,822.19)                
    year before     cents           cents           cents                     
    cumulative                                                                
    effect of a                                                               
    change in                                                                 
    accounting                                                                
    principle                                                                 
    Net loss        (2,917.51)      (1,521.79)      (11,201.92)               
                    cents           cents           cents                     
    Diluted                                                                   
    Loss for the    (2,917.51)      (1,521.79)      (1,822.19)                
    year before     cents           cents           cents                     
    cumulative                                                                
    effect of a                                                               
    change in                                                                 
    accounting                                                                
    principle                                                                 
    Net loss        (2,917.51)      (1,521.79)      (11,201.92)               
                    cents           cents           cents                     
                                                                              
                                                                              
                                                                              
    * One ADS is equivalent to 10 Shares.                                     
                                                                              
    The following table summarizes the effect on shareholders'                
    (deficit)/equity of the differences between HK GAAP and US GAAP.          
                                                                              
                                              December 31,                    
                         2004                 2003                            
                         HK$ million          HK$ million                     
                                                                              
    Shareholders'        (6,716)              (7,839)                         
    deficit as reported                                                       
    under HK                                                                  
    GAAP                                                                      
    US GAAP                                                                   
    adjustments:                                                              
    Goodwill - cost      141,412              141,412                         
    Goodwill -           (78,768)             (65,607)                        
    amortization and                                                          
    provision for                                                             
    impairment                                                                
    loss                                                                      
    Intangible assets -  10,694               10,694                          
    cost                                                                      
    Intangible assets -  (9,676)              (6,004)                         
    amortization and                                                          
    provision for                                                             
    impairment                                                                
    loss                                                                      
    Accumulated          (1,067)              (876)                           
    depreciation on                                                           
    investment                                                                
    properties                                                                
    Investments in       337                  745                             
    marketable equity                                                         
    securities and                                                            
    derivative                                                                
    instruments                                                               
    Property             (25)                 (305)                           
    revaluation                                                               
    reserve                                                                   
    Retirement scheme    130                  344                             
    costs                                                                     
    Deferral of          (609)                (498)                           
    up-front                                                                  
    fees                                                                      
    Deferred taxes       210                  (497)                           
    arising from other                                                        
    GAAP                                                                      
    differences                                                               
    Non-employee stock   (273)                (231)                           
    options                                                                   
    Expenses relating    (17)                 36                              
    to onerous                                                                
    contracts                                                                 
    Others               347                  322                             
                         62,695               79,535                          
    Shareholders'        55,979               71,696                          
    equity under US                                                           
    GAAP