11:10     MELCO INT'L DEV<00200> - Announcement (26)                          

    The clarification of the contents of certain of the                       
    reports in the press with the Stock Exchange remain                       
    outstanding at the date of this announcement.                             
                                                                              
    SUSPENSION AND RESUMPTION 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 referred to above.                                       
                                                                              
    As at the date of this announcement, the executive                        
    directors of Melco are Dr. Stanley Ho, Mr. Lawrence Ho                    
    and Mr. Frank Tsui; the non-executive directors are Mr.                   
    Ng Ching Wo and Mr. Ho Cheuk Yuet; and the three                          
    independent non-executive directors are Sir Roger Lobo,                   
    Mr. Robert Kwan and Dr. Lo Ka Shui.                                       
                                                                              
    DEFINITIONS                                                               
    In this announcement, unless the context otherwise                        
    requires, the following terms have the meanings set                       
    opposite them below:                                                      
                                                                              
    "Agreements"   the First Agreement and the Second                         
    Agreement                                                                 
                                                                              
    "associate"   the meaning assigned to that expression                     
    in the Listing Rules                                                      
                                                                              
    "Better Joy"   Better Joy Overseas Limited, a company                     
    owned as to 77% by Mr. Lawrence Ho and as to 23% by Dr.                   
    Stanley Ho                                                                
                                                                              
    "Board"   the Board of Directors of Melco                                 
                                                                              
    "Concert Party"   the concert party consisting of Dr.                     
    Stanley Ho, Madam Lucina Laam King Ying, Mr. Lawrence                     
    Ho, Lasting Legend, Better Joy, STDM and Great Respect                    
                                                                              
    "Convertible Loan Notes"   HK$1,175 million in                            
    principal amount of Convertible Loan Notes due 2010 to                    
    be issued by Melco and subscribed by Great Respect under                  
    the First Agreement and conferring the right to                           
    subscribe for new Shares at an initial conversion price                   
    of HK$19.93 per Share, subject to adjustment in                           
    accordance with the terms and conditions of the                           
    Convertible Loan Notes                                                    
                                                                              
    "Declaration Agreement"   the agreement dated 9th                         
    March 2005 between Melco Leisure and Melco                                
    Entertainment, pursuant to which Melco Leisure                            
    declared that all its rights and benefits under the                       
    Joint Venture MOA are held by it on behalf of Melco                       
    Entertainment and that it would, at the request of Melco                  
    Entertainment, and as required by the Shareholders                        
    Agreement, transfer its 50.8% interest under the Joint                    
    Venture MOA and its interest in Melco Hotels to Melco                     
    Entertainment                                                             
                                                                              
    "EGM"   the extraordinary general meeting of                              
    Shareholders proposed to be convened by Melco to                          
    consider and, if thought fit, approve:                                    
                                                                              
    (a)   the Agreements and the transactions contemplated                    
    by them;                                                                  
                                                                              
    (b)   the grant of a long term lease in respect of the                    
    Land to Melco Hotels;                                                     
                                                                              
    (c)   the development of the Land by Melco Hotels and                     
    Melco Entertainment, involving the construction of an                     
    integrated entertainment resort having the features                       
    described in this announcement; and                                       
                                                                              
    (d)   if the Placing proceeds, the Whitewash Waiver;                      
                                                                              
    "Executive"   the Executive Director of the Corporate                     
    Finance Division of the SFC or any of his delegates                       
                                                                              
    "First Agreement"   an agreement dated 11th May 2005                      
    between Melco Entertainment, Great Respect and Melco                      
    relating to the acquisition by Melco Entertainment of                     
    the 49.2% interest of Great Respect in the Joint Venture                  
    and the application by Great Respect of the proceeds                      
    of that acquisition to subscribe for the Convertible                      
    Loan Notes to be issued by Melco