10:05     MELCO INT'L DEV<00200> - Announcement & Resumption (8)              

    WHITEWASH WAIVER                                                          
    As referred to in the Acquisition Announcement, HK$1,175 million          
    in principal amount of Convertible Loan Notes due 2010 are proposed       
    to be issued by the Company and subscribed by Great Respect               
    following the acquisition by Melco Entertainment of the 49.2%             
    interest of Great Respect in the joint venture established to apply       
    to the Macau Government for the grant of development rights in            
    respect of land in Cotai, Macau. Based on the Company's issued Share      
    capital immediately following the completion of the Placing and the       
    Subscription and the issue of 11,111,111 Shares to STDM (as referred      
    to in the Company's announcement dated 22nd March, 2005), if the          
    conversion rights conferred by the Convertible Loan Notes were            
    exercised in full, the Concert Party's Shareholding in the Company        
    would increase by approximately 4.934%, from approximately 47.22%         
    to approximately 52.154%. Accordingly, conversion of the                  
    Convertible Loan Notes in full would result in the Concert Party's        
    Shareholding increasing by more than the 2% increase from the lowest      
    percentage Shareholding in the immediately preceding 12 month             
    period, which is permitted by the "creeper" provisions of Rule 26         
    of the Takeovers Code without requiring a general offer to be made        
    to all Shareholders. However, an application will be made by Great        
    Respect to the SFC for the Whitewash Waiver, being a waiver by the        
    Executive of the obligations of Great Respect and the Concert Party       
    to make a mandatory general offer to acquire the entire issued Share      
    capital of the Company not otherwise owned by the Concert Party as        
    a result of the exercise in full of the Convertible Loan Notes.           
                                                                              
    Shareholders are advised to note that, following the completion of        
    the Placing and the Subscription and the issue of 11,111,111 new          
    Shares to STDM, if the Whitewash Waiver is granted, the exercise          
    in full of the conversion rights conferred by the Convertible Loan        
    Notes will result in the Concert Party's Shareholding increasing          
    to more than 52% of the voting rights of the Company. As a result,        
    the Concert Party may thereafter increase its aggregate                   
    shareholding in the Company without incurring any further                 
    obligation under Rule 26 of the Takeovers Code to make a general          
    offer.                                                                    
                                                                              
    On 11th April, 2005, Better Joy exercised conversion rights under         
    certain convertible notes issued to it by the Company as                  
    consideration for the acquisition of Mocha Slot. This exercise of         
    conversion rights resulted in 19,565,216 Shares being issued to           
    Better Joy by the Company. On 14th April, 2005, Mr. Lawrence Ho           
    exercised options issued to him under the Company's employee share        
    option scheme, to subscribe for a total of 900,000 Shares. Other          
    than as disclosed in this paragraph, no member of the Concert Party       
    has acquired any Shares in the 6 months prior to the date of this         
    announcement and the Company has not repurchased any Shares during        
    that period.                                                              
                                                                              
    D.   GENERAL                                                              
    Dealing in the Shares on the Stock Exchange was suspended at the          
    request of the Company from 9:30 a.m. on 11th May, 2005 pending the       
    issue of the Acquisition Announcement and this announcement.              
    Application has been made by the Company for the resumption of            
    dealing in the Shares on the Stock Exchange with effect from 9:30         
    a.m. on 18th May, 2005.                                                   
                                                                              
    E.   DEFINITIONS                                                          
    The following defined terms are used in this announcement:                
                                                                              
    "Acquisition Announcement"   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"                                                                   
                                                                              
    "associates"   has the meaning ascribed thereto in the Listing            
    Rules                                                                     
                                                                              
    "Better Joy"   Better Joy Overseas Ltd., a company owned as to 77%        
    by Mr. Lawrence Ho and as to 23% by Dr. Stanley Ho                        
                                                                              
    "Company"   Melco International Development Limited                       
                                                                              
    "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