09:35     NEW WORLD TMT<00301> - Announcement (2)                             

    The directors of the Company (including the independent non-executive     
    directors) are of the view that the terms of the Terms Agreement are on   
    normal commercial terms and are fair and reasonable and in the            
    interests of the shareholders of the Company as a whole.                  
                                                                              
    CONNECTION BETWEEN THE PARTIES                                            
                                                                              
    By virtue of being a wholly owned subsidiary of NWD, the controlling      
    shareholder of the Company, NWT is a connected person of the Company      
    and the entering into of the Terms Agreement constitutes a continuing     
    connected transaction for the Company under the Listing Rules. As the     
    applicable ratios for the annual cap in respect of the Terms Agreement    
    are more than 0.1% but less than 2.5%, the Terms Agreement is subject     
    to the reporting, announcement and annual review requirements, and is     
    exempt from independent shareholders' approval under the Listing Rules.   
                                                                              
    The Company will re-comply with the Listing Rules in case the annual      
    cap is exceeded or when the Terms Agreement is renewed or there is a      
    material change to the terms of the Terms Agreement.                      
                                                                              
    INFORMATION ON THE COMPANY                                                
                                                                              
    The Company is principally engaged in the development, investment,        
    operation and/or management of telecommunications, media and technology   
    businesses in Hong Kong and the Mainland China.                           
                                                                              
    As at the date of this announcement, the Board comprises (i) three        
    executive directors, namely Dr Cheng Kar-Shun, Henry, Mr Wong Chi-Chiu,   
    Albert and Dr Wai Fung-Man, Norman; (ii) four non-executive directors,    
    namely Mr Wilfried Ernst Kaffenberger (alternate director to Mr           
    Wilfried Ernst Kaffenberger: Mr Yeung Kun-Wah, David), Mr Fu Sze-Shing,   
    Mr Lee Sean, Sammy and Mr Lai Hing-Chiu, Dominic; and (iii) three         
    independent non-executive directors, namely Dr Lam Man-Kit, Dominic,      
    The Honourable Shek Lai-Him, Abraham and Mr Kong Chi-How, Johnson.        
                                                                              
    DEFINITIONS                                                               
                                                                              
    In this announcement, the following expressions shall, unless the         
    context requires otherwise, have the following meanings:                  
                                                                              
    "Apex-Pro"  Apex-Pro Systems Limited, a company incorporated in Hong      
    Kong with limited liability and a 62.75% subsidiary of the Company        
                                                                              
    "Company"  New World TMT Limited, a company incorporated in the Cayman    
    Islands with limited liability, the shares of which are listed on the     
    Stock Exchange                                                            
                                                                              
    "connected person"  has the meaning ascribed to it under the Listing      
    Rules                                                                     
                                                                              
    "Group"  the Company and its subsidiaries                                 
                                                                              
    "Hong Kong"  the Hong Kong Special Administrative Region of the           
    People's Republic of China                                                
                                                                              
    "Listing Rules"  The Rules Governing the Listing of Securities on the     
    Stock Exchange                                                            
                                                                              
    "NWD"  New World Development Company Limited, a company incorporated in   
    Hong Kong with limited liability, the shares of which are listed on the   
    Stock Exchange                                                            
                                                                              
    "NWT"  New World Telecommunications Limited, a company incorporated in    
    Hong Kong with limited liability and a wholly owned subsidiary of NWD     
                                                                              
    "Stock Exchange"  The Stock Exchange of Hong Kong Limited                 
                                                                              
    "Terms Agreement"  the terms agreement dated 27 May 2005 made between     
    Apex-Pro and NWT                                                          
                                                                              
    By Order of the Board                                                     
    Richard Poon                                                              
    Company Secretary                                                         
                                                                              
    Hong Kong, 27 May 2005