10:03     MELCO INT'L DEV<00200> - Announcement & Resumption (2)              

    The Directors are pleased to announce the signing of the Placing          
    and Subscription Agreement on 17th May, 2005 which was entered into       
    between the Vendor, the Company and the Placing Agent, containing         
    the terms described in Sections A and B below.                            
                                                                              
    A.   PLACING OF 70,000,000 EXISTING SHARES CURRENTLY HELD BY BETTER       
    JOY AT A PLACING PRICE OF HK$18.25 PER SHARE                              
    Vendor:   The Vendor.                                                     
                                                                              
    Number of Placing Shares:   70,000,000 Shares to be placed,               
    representing approximately 14.26% of the existing issued Share            
    capital of the Company of 491,019,270 Shares and approximately            
    12.48% of the issued Share capital of the Company as enlarged by          
    the issue of 70,000,000 new Shares under the Subscription. The            
    Placing Shares rank pari passu with the existing issued Shares of         
    the Company. The Placing is fully underwritten by the Placing Agent.      
                                                                              
    Placing price:   HK$18.25 per Placing Share. This price was agreed        
    after arm's length negotiations and represents (i) a discount of          
    approximately 5.93% to the closing price of HK$19.40 per Share as         
    quoted on the Stock Exchange on the Last Dealing Date; and (ii) a         
    discount of approximately 8.43% to the average closing price of           
    approximately HK$19.93 per Share as quoted on the Stock Exchange          
    for the 5 trading days of the Shares immediately before and               
    including the Last Dealing Date. The estimated costs of the Placing       
    and the Subscription are approximately HK$38,500,000, resulting in        
    aggregate net proceeds of the Placing of approximately                    
    HK$1,239,000,000 or a net price of approximately HK$17.70 per             
    Placing Share.                                                            
                                                                              
    Placing Agent:   Credit Suisse First Boston (Hong Kong) Limited,          
    which is an Independent Third Party. The Placing Agent will receive       
    a placement commission of 2.875% on the gross proceeds of the             
    Placing.                                                                  
                                                                              
    Placees:   The Placing Shares will be placed to not less than six         
    institutional investors who are Independent Third Parties. Each of        
    the Placees is independent of and does not act in concert with the        
    Vendor or any person acting in concert or deemed to be acting in          
    concert with the Vendor under the Takeovers Code (including any           
    other member of the Concert Party). Each of the Placees and parties       
    acting in concert with the relevant Placee will hold less than 30%        
    of the voting rights of the Company following the Placing and,            
    accordingly, the Placing will not result in an obligation to make         
    a general offer under the Takeovers Code. The Board does not expect       
    any placee will become a substantial shareholder of the Company (as       
    defined in the Listing Rules) as a result of the Placing.                 
                                                                              
    Termination:   The Placing is subject to termination on the               
    occurrence of certain events prior to completion of the Placing,          
    including:                                                                
                                                                              
       (a)   any material breach of the warranties given by the Company       
    and the Vendor under the Placing and Subscription Agreement;              
                                                                              
       (b)   certain events of force majeure which might have a               
    material adverse effect on the Placing including (i) the                  
    introduction or amendment of any new laws or regulations which may        
    affect the Group, (ii) any significant change in local, national          
    or international monetary, economic, financial, political or              
    military conditions, or (iii) any significant change in local,            
    national or international securities market conditions or currency        
    exchange rates or foreign exchange controls; and                          
                                                                              
       (c)   any suspension of dealings in the Shares prior to                
    completion of the Placing, other than as a result of the Placing.         
                                                                              
       The Directors are not aware of the occurrence of any of such           
    events as at the date of this announcement. The Directors consider        
    that the placing price of HK$18.25 per Placing Share is fair and          
    reasonable in the circumstances.                                          
                                                                              
    Completion:   Apart from the Placing Agent's termination right            
    referred to above, the Placing is unconditional and completion of         
    the Placing is expected to take place on 20th May, 2005.                  
                                                                              
    B.   SUBSCRIPTION OF 70,000,000 NEW SHARES BY BETTER JOY                  
    Subscriber:   The Vendor.                                                 
                                                                              
    Number of Subscription Shares:   The Company will issue 70,000,000        
    new Shares to the Vendor representing approximately 14.26% of the         
    existing issued Share capital of the Company and approximately            
    12.48% of the issued Share capital of the Company as enlarged by          
    the issue of the Subscription Shares under the Subscription.