10:03     MELCO INT'L DEV<00200> - Announcement & Resumption (3)              

    Subscription Price:   An aggregate amount of HK$1,277,500,000             
    (equal to the aggregate gross proceeds of the Placing) less the           
    amount of the commission and expenses incurred by the Vendor in           
    relation to the Placing and the Subscription, which are estimated         
    to be approximately HK$38,500,000. This represents a net                  
    subscription price per Subscription Share of approximately                
    HK$17.70. The net subscription price represents a discount of             
    approximately 8.76% to the closing price of HK$19.40 per Share as         
    quoted on the Stock Exchange on the Last Dealing Date and a discount      
    of approximately 11.19% 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. Any interest earned by the Vendor        
    on the moneys raised by the Placing, between the date of completion       
    of the Placing and the date of completion of the Subscription, will       
    be paid to the Company.                                                   
                                                                              
    General Mandate:   The Subscription Shares will be issued pursuant        
    to the mandate to allot, issue and deal with Shares granted to the        
    Directors by a resolution of its shareholders passed at the               
    Company's extraordinary general meeting held on 20th January, 2005.       
    The general mandate has not been utilised prior to entering into          
    the Placing and Subscription Agreement.                                   
                                                                              
    Ranking of Subscription Shares:   The Subscription Shares will            
    rank equally with Shares in issue at the time of issue and allotment      
    of the Subscription Shares.                                               
                                                                              
    Use of Proceeds:   The net proceeds from the Placing of                   
    approximately HK$1,239,000,000 will be used to finance the                
    construction and development of the proposed integrated                   
    entertainment resort described in the Company's announcement dated        
    13th May, 2005 relating to the "Proposed Acquisition of Additional        
    Land in Macau for Development as an Integrated Entertainment              
    Resort". The Placing and Subscription are not conditional on              
    completion of the transactions described in the Acquisition               
    Announcement. Similarly, the transactions described in the                
    Acquisition Announcement are not conditional on completion of the         
    Placing or the Subscription.                                              
                                                                              
       Briefly, as referred to in the Acquisition Announcement, Melco         
    Entertainment has agreed to acquire the entire issued share capital       
    of Melco Hotels, a company holding the right to be granted a long         
    term lease by the Macau Government in respect of a plot of land of        
    approximately 113,325 sq. metres in Taipa, Macau, located on the          
    Cotai Strip, for the construction and development of an integrated        
    entertainment resort. The Acquisition Announcement also describes         
    in detail the Company's proposals to develop the land, which include      
    the construction of:                                                      
                                                                              
    *   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 life 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            
                                                                              
    Shareholders and the public are advised to refer to the Acquisition       
    Announcement for further details.                                         
                                                                              
    As set out in the Acquisition Announcement, the Directors                 
    anticipate that the total costs of the land and the construction          
    and development of the integrated entertainment resort described          
    in the Acquisition Announcement will be in the region of HK$7,963         
    million, consisting of approximately HK$1,684 million of land costs       
    and land premium and approximately HK$6,279 million of construction       
    costs. Of the aggregate estimated costs of the development of             
    approximately HK$7,963 million, it is anticipated that:                   
                                                                              
    *   approximately HK$5,176 million will be financed by way of             
    project financing, to be undertaken by Melco Entertainment