11:00 MELCO INT'L DEV<00200> - Announcement (6) Suspension of Trading At the request of Melco, the Shares were suspended from trading on the Stock Exchange at 9:30 a.m. on 11th May 2005. The Shares will remain suspended following the publication of this announcement, pending the publication of a further announcement regarding the possible Placing. THE DEVELOPMENT PROJECT On 10th May 2005, Melco Hotels accepted in principle an offer from the Macau Government to grant to Melco Hotels a long term lease of land parcels on the Cotai Strip in Macau with an aggregate area of 113,325 sq. meters, for the development of an integrated entertainment resort with the following principal features: * one five star hotel with approximately 500 rooms and two four star hotels with approximately 750 rooms each * subject to obtaining the necessary Macau regulatory approvals, an underwater casino showcasing tropical marine with approximately 45,000 sq. meters gaming space and 400 mass market gaming tables, 50 premium player market gaming tables and 3,000 electronic slot machines * two blocks of service apartments with approximately 142,000 sq. meters saleable area * retail shopping space of approximately 10,000 sq. meters * a performance hall with approximately 8,500 sq. meters auditorium and back of house areas * car parking facilities and other supporting infrastructure The Macau Government offered the right to be granted development rights in respect of the Land to Melco Hotels in a letter dated 21st April 2005, which sets out detailed specifications of the permitted uses and developable gross floor area of the site and the applicable land premium payable to take up the grant. The offer letter from the Macau Government is in respect of a development of 403,692 sq. metres, comprising a five-star hotel of 53,659 sq. metres, a three-star hotel of 250,833 sq. metres, aggregate car parking of 61,370 sq. metres and outdoor space of 37,830 sq. metres, The terms of the proposed grant were accepted in principle by Melco Hotels on 10th May 2005. A limited number of matters in relation to the detailed terms of the grant and the undertaking of preliminary peripheral infrastructure work remain to be discussed with the Macau Government. Melco Hotels has, in addition, requested an increase in the developable site area from the 403,692 sq. meters contemplated by the offer letter from the Macau Government, to the approximately 450,000 sq. meters contemplated by the proposed development described above. A formal written application for that increase was submitted to the Macau Government on 10th May 2005 and the Directors anticipate that the requested increase of the developable gross floor area, to permit the development described above, will be granted by the Macau Government in the context of the process which is expected to ultimately result in the grant of a formal legally binding long term lease in respect of the Land. Subject to the foregoing, the terms of the proposed land grant are substantially agreed in principle, albeit that a legally binding commitment of Melco Hotels will only arise upon the execution by it of a legally binding contract with the Macau Government. That legally binding contract will only be entered into by Melco Hotels subject to, or following, the approval of the Land grant and the project by Shareholders of Melco (by way of a poll) at the EGM. Subject to the approval of Shareholders having been obtained, the directors anticipate that the legally binding contract will be entered into in the second half of 2005. Construction of the development is expected to commence in the latter part of 2005 and it is anticipated that the complex will commence operations in mid 2008. The service apartments are currently intended for sale, with pre-sales expected to commence in mid 2006.