11:01     MELCO INT'L DEV<00200> - Announcement (7)                           

    The Land consists of two individual parcels. The grant                    
    of development rights in respect of "Parcel A", a parcel                  
    of land of 73,528 sq. meters which is registered as Lot                   
    No. 23053 in the Property Registration Bureau, would                      
    be conditional on the return of the land parcel to the                    
    Macau Government by the existing holder of development                    
    rights in respect of it, Elite Sociedade De                               
    Desenvolvimento Educational, S.A.. Elite Sociedade De                     
    Desenvolvimento Educational, S.A. is an independent                       
    third party not connected with Melco and its                              
    subsidiaries or any of its substantial shareholders,                      
    directors or chief executive and their respective                         
    associates. The Directors do not have any further                         
    detailed information in respect of Elite Sociedade De                     
    Desenvolvimento Educational, S.A., but understand it                      
    is affiliated with a senior educational establishment                     
    in Macau. Melco has obtained written confirmation from                    
    Elite Sociedade De Desenvolvimento Educational, S.A.                      
    that it is negotiating with the Macau Government for                      
    an exchange of the Land and that it will endeavour to                     
    complete those negotiations as soon as possible with                      
    the intention that "Parcel A" is surrendered to the                       
    Macau Government (and hence granted to Melco Hotels)                      
    before May 2006. The grant of rights in respect of                        
    "Parcel B", a parcel of land of 39,797 sq. meters which,                  
    according to the documents provided to Melco Hotels by                    
    the Macau Government in respect of the Land,  is                          
    unregistered, would not be subject to such a condition.                   
                                                                              
    If granted, the lease term would initially be 25 years                    
    from the date of grant (which is currently expected to                    
    be in the second half of 2005), with the right to renew                   
    for further consecutive periods of 10 years in                            
    accordance with the applicable provisions of Macau law.                   
    Macau law does not specify a limit on the number of times                 
    that the lease may be renewed and, accordingly, the                       
    lease is capable of renewal for indefinite successive                     
    periods.                                                                  
                                                                              
    The premium payable on the grant of a long term lease                     
    for the construction and development on the Land of an                    
    integrated entertainment resort having the features                       
    described above will need to be agreed with the Macau                     
    Government in the context of the process which is                         
    expected to ultimately result in the formal grant of                      
    a long term lease in respect of the Land. The amount                      
    of the land premium originally proposed by the Macau                      
    Government in its 21st April 2005 letter (calculated                      
    pursuant to applicable regulations in Macau) is MOP                       
    509,124,823 (equivalent to approximately                                  
    HK$494,295,945), although this amount may be adjusted                     
    if the Macau Government accedes to Melco Hotels'                          
    request to increase the developable gross floor area                      
    at the site from approximately 400,000 sq. meters to                      
    approximately 450,000 sq. meters. In addition, as is                      
    customary for this type of project, it is anticipated                     
    that Melco Hotels will also be required to provide                        
    guarantee money to the Macau Government by way of a cash                  
    deposit or bank guarantee acceptable to the Macau                         
    Government. It is anticipated that the amount of the                      
    guarantee money required to be provided by Melco Hotels                   
    will be in the region of MOP 2,300,000 (equivalent to                     
    approximately HK$2,233,010).                                              
                                                                              
    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 will only be entered into                         
    subject to, or following, the approval of the project                     
    by the Shareholders of Melco (by way of poll) at the                      
    EGM. Further details in respect of 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 mentioned above will                      
    be set out in the circular to be dispatched to                            
    Shareholders.                                                             
                                                                              
    Melco will make further announcements in respect of the                   
    entering into by Melco Hotels of legally binding                          
    commitments 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 at the appropriate time in                        
    accordance with the Listing Rules.