09:10     HUTCH TELECOM<02332> - Announcement (1)                             

    The Stock Exchange of Hong Kong Limited takes no responsibility           
    for the contents of this announcement, makes no representation            
    as to its accuracy or completeness and expressly disclaims any            
    liability whatsoever for any loss howsoever arising from or in            
    reliance upon the whole or any part of the contents of this               
    announcement.                                                             
                                                                              
    HUTCHISON TELECOMMUNICATIONS INTERNATIONAL LIMITED                        
    (incorporated in the Cayman Islands with limited liability)               
    (Stock Code: 2332)                                                        
                                                                              
    CONNECTED TRANSACTION                                                     
                                                                              
    The Board announces that on 20 May 2005, the Company executed             
    the Credit Agreement and agreed to procure the issue of the SBLC          
    as security, replacing the HWL Guarantee, for an INR875 million           
    (approximately HK$156 million) term loan facility extended to             
    JKF.                                                                      
                                                                              
    JKF is an indirect non wholly owned subsidiary of the Company             
    and a connected person of the Company by virtue of it being an            
    associate of the Kotak Mahindra Group, which is also a                    
    substantial shareholder of other Indian subsidiaries of the               
    Company.                                                                  
                                                                              
    The issue of the SBLC as procured by the Company constitutes              
    provision of financial assistance by HTIL to JKF and as such              
    amounts to a connected transaction for the Company under Listing          
    Rule 14A.13(2)(a)(i). As such provision of financial assistance           
    is on normal commercial terms and the relevant percentage ratios          
    are more than 0.1% but less than 2.5%, such connected transaction         
    is according to Listing Rule 14A.66(2)(a) only subject to the             
    reporting and announcement requirements set out in Listing Rules          
    14A.45 to 14A.47 and is exempt from the independent shareholders'         
    approval requirements of Chapter 14A of the Listing Rules.                
                                                                              
                                                                              
    On 25 May 2005, JKF agreed to an extension of the Original Term           
    Loan Facility provided by the Lender, an independent financial            
    institution. The security under such facility was the HWL                 
    Guarantee. On 20 May 2005, the Company executed the Credit                
    Agreement and agreed to procure the issue of the SBLC which is            
    being provided by another independent financial institution to            
    replace the HWL Guarantee as security for the Extended Original           
    Term Loan Facility.                                                       
                                                                              
    CREDIT AGREEMENT                                                          
                                                                              
    Parties                                                                   
                                                                              
      SBLC                                                                    
        Applicant:  The Company                                               
                                                                              
      SBLC Bank:    The SBLC Issuer, an independent financial institution     
                                                                              
    Facility:       For issuing standby letter or letters of credit of up     
    to US$22.5 million (approximately HK$175.5 million) as security           
    for the Extended Term Loan Facility in replacement of the HWL             
    Guarantee.                                                                
                                                                              
    Terms and                                                                 
      conditions:   Normal commercial terms                                   
                                                                              
    The Company is entitled to receive from JKF a credit support              
    fee at a normal commercial rate for procuring the issue of the            
    SBLC.                                                                     
                                                                              
    Pursuant to the subrogation agreement dated 25 May 2005 entered           
    into by JKF, the Company, the SBLC Issuer and the Lender, the             
    Company has been granted subrogation rights