PCCW Business eSolutions and IBM Form Business Alliance

10-year contract provides all industry sectors with a wide range of IT services

Hong Kong, August 28, 2001 - PCCW's Business eSolutions and IBM China/Hong Kong Ltd. (IBM) today jointly announced a 10-year teaming agreement to provide a wide range of IT services to enterprises and organizations across various industry sectors.

The alliance better positions the two parties to capitalize on the increasing demand for IT services in the region, with an initial focus on the Hong Kong market. The services are intended to expand into other parts of greater China in light of China's imminent entry into the World Trade Organization.

The agreement allows both parties to leverage on each other's core competencies in network integration, open system management, computing infrastructure, workflow management, maintenance and technical expertise, helping PCCW and IBM gain leading positions in the IT market.

"Customers no longer need to go to several different vendors for top-quality services," said William Cheung, PCCW's Group Chief Operating Officer. "This alliance offers total solutions, enabling each partner to focus on developing its core strengths and maximize business opportunities. The alliance will allow us to tailor solutions to best meet customer needs on a case-by-case basis."

Cordelia Chung, General Manager of IBM China/Hong Kong Limited, said: "The partnership provides a strong value proposition to our customers and represents one of our key initiatives to realize opportunities in the growing IT services market.

"By pooling the strengths of two companies, we'll be able to offer industry's most comprehensive range of IT service solutions to meet the diverse needs of customers in the region. This alliance not only provides customers with quick and convenient access to top notch products and services from two industry leaders, but can also help them save cost and time to build and manage their IT infrastructure," Ms. Chung added.

Today, large enterprises such as governments, multinational banking and financial companies, as well as telecommunications sectors, are using a wide range of IT technologies to fulfill their business needs. With combined strengths in hardware, software, IT services, bandwidth and telecommunications, PCCW and IBM offer businesses unrivaled services in managed data centers, managed operating systems, application management, systems integration, IT security and data base support.

"Enterprise clients with different legacy systems are seeking a one-stop solution provider that can offer quality solutions across different platforms," said Thomas Siu, President of PCCW Business eSolutions. "The alliance provides a merging of skills and single point of delivery to meet demand of these customers. Besides, this business alliance will lead to immense business opportunities for both parties."

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About PCCW

Pacific Century CyberWorks Limited (SEHK: 0008, ADR-NYSE: PCW), the Hong Kong-listed flagship of the Pacific Century Group, is one of Asia's leading integrated communications companies. From its market-leading position in Hong Kong, PCCW is focused on building shareholder value by leveraging synergies between its core businesses and partners, and by delivering customer-led total solutions throughout Asia, particularly in greater China. PCCW provides key services in the areas of: integrated telecommunications; broadband solutions; mobility and connectivity; narrowband and interactive broadband (Internet Services); business e-solutions; data centers and related infrastructure.

About IBM China/Hong Kong Limited

IBM is the world's largest information technology company, with 80 years of leadership in helping businesses innovate. It played a leading role in driving the three computing "Waves". The first was mainframe computing. The second "Wave" marked the shift of power to the desktop through the development of the PC. IBM has fully embraced the "Third Wave" as an e-business company, connecting people through their computers to colleagues, customers, suppliers, government departments, and a huge virtual world of information, services and entertainment. IBM opened for business in Hong Kong on April 16, 1957, and has been providing IT solutions to help Hong Kong's development since then. For more information about IBM Hong Kong, go to

About PCCW Business eSolutions

PCCW's Business eSolutions provides seamless end-to-end solutions that support enterprise customers across Asia. Its service scope includes business consulting, systems integration, Web design, applications development, online security and payment platforms, broadband access, business Internet portals, online marketplaces, and logistics and fulfillment services.

Leveraging on PCCW's network infrastructure and regional connectivity coverage, Business eSolutions offers next-generation network services by focusing on vertical industrial applications and value-added services that benefit from the networked economy. Business eSolutions is targeting selected high-growth industrial sectors in greater China, including finance, the public sector, multimedia communications and manufacturing.

For more information, please contact:

Irene Cheung
PCCW Business eSolutions
Phone: (852) 2888-2502
Rosita Chan
IBM China/Hong Kong Limited
Phone: (852) 2825-0036