11:00     MELCO INT'L DEV<00200> - Announcement (4)                           

    Implications under the Listing Rules                                      
    The First Agreement constitutes a very substantial                        
    acquisition for Melco under Chapter 14 of the Listing                     
    Rules, on the basis that the total assets which are the                   
    subject of the transaction (calculated as Great                           
    Respect's 49.2% interest in the Joint Venture on the                      
    basis of the open market value of the Land derived from                   
    the preliminary valuation report of Savills (Hong Kong)                   
    Limited (an independent valuer) delivered to Melco in                     
    May, 2005 as referred to below) exceeds 100% of the total                 
    assets of Melco. The First Agreement is conditional on                    
    approval by Independent Shareholders (by way of poll)                     
    at the EGM.                                                               
                                                                              
    Great Respect is a company controlled by a                                
    discretionary family trust of Dr. Stanley Ho, who is                      
    a director, shareholder and connected person of Melco.                    
    Accordingly, the First Agreement also constitutes a                       
    connected transaction of Melco under the Listing Rules.                   
    Dr. Stanley Ho, Mr. Lawrence Ho and their respective                      
    associates, including Madam Lucina Laam King Ying,                        
    Better Joy and Lasting Legend will abstain from voting                    
    on the relevant resolution regarding the First                            
    Agreement and the transactions contemplated by it. In                     
    aggregate, these persons hold shares representing                         
    approximately 52.76% of the issued share capital of                       
    Melco as at the date of this announcement.                                
                                                                              
    The Second Agreement constitutes a very substantial                       
    disposal for Melco under Chapter 14 of the Listing Rules,                 
    on the basis that the preliminary open market valuation                   
    of the Land, as determined in the preliminary valuation                   
    report of Savills (Hong Kong) Limited (an independent                     
    valuer), exceeds 75% of the total assets of Melco. Since                  
    the 50.2% interest in the Land is being acquired by Melco                 
    Entertainment, the Second Agreement also constitutes                      
    a very substantial acquisition for Melco under Chapter                    
    14 of the Listing Rules, on the basis that the                            
    preliminary open market valuation of the Land, as                         
    determined in the preliminary valuation report of                         
    Savills (Hong Kong) Limited (an independent valuer),                      
    exceeds 100% of the total assets of Melco. The Second                     
    Agreement is also a connected transaction of Melco                        
    under the Listing Rules as an agreement between Melco's                   
    wholly-owned subsidiary (Melco Leisure) and its                           
    non-wholly owned subsidiary (Melco Entertainment).                        
    Accordingly, the Second Agreement is also conditional                     
    on approval by Independent Shareholders (by way of poll)                  
    at the EGM. In the case of the Second Agreement, the                      
    Directors are not aware of any Shareholders at the date                   
    of this announcement who would be precluded by the                        
    Listing Rules from voting on the resolution to approve                    
    the Second Agreement and the transactions contemplated                    
    by it.                                                                    
                                                                              
    An independent board committee of Melco comprising its                    
    independent non-executive directors will be appointed                     
    to advise the Independent Shareholders in relation to                     
    the First Agreement, the Second Agreement and the                         
    transactions contemplated by each of them. An                             
    independent financial adviser will be appointed to                        
    advise the independent board committee.                                   
                                                                              
    The legally binding commitments of Melco Hotels                           
    expected to be entered into in the future as a result                     
    of its in principle acceptance of the Macau                               
    Government's offer to grant a long term lease in respect                  
    of the Land, and in connection with the future                            
    development of the Land as an integrated entertainment                    
    resort, will, in aggregate, constitute a very                             
    substantial acquisition for Melco under Chapter 14 of                     
    the Listing Rules, on the basis that the aggregate of                     
    the amount of the Land premium required to be paid to                     
    secure the grant of a long term lease in respect of the                   
    Land and the costs of development and construction of                     
    an integrated entertainment resort will exceed 100% of                    
    the total assets of Melco. The aggregate of the amount                    
    of the Land premium and estimated development costs of                    
    the integrated entertainment resort having the                            
    features described in this announcement are expected                      
    to be in the region of approximately HK$8,000 million.                    
                                                                              
    Circular                                                                  
    A circular containing further details of:                                 
                                                                              
    (a)   the Agreements and the transactions contemplated                    
    by them;