Pacific Century CyberWorks unveils strategy

"New" Pacific Century CyberWorks unveils strategy
"8 X 3" structure geared to capture global opportunities

Hong Kong August 17, 2000 Pacific Century CyberWorks (SEHK: 0008) announced its global growth strategy today, upon completion of its US$38 billion merger with the former Cable & Wireless HKT.

The new PCCW will utilize an innovative "8 X 3" model that operates eight business units via three operating sectors, operating on principles of accessibility, accountability and transparency.

The new structure is designed to best realize the myriad Internet, broadband and communication opportunities in the Asia-Pacific region and beyond, said Richard Li, Chairman and CEO of PCCW.

"Today's merger has created a first-of-its-kind company," said Mr. Li, who founded Pacific Century CyberWorks in 1999.

Mr. Li identified the three sectors as Telecommunications Services, Global Communications Services and Net Enterprises.

Telecommunications Services consists of fixed line operations, and represents the engine room providing cash for the other two growth sectors. Funds are generated from 3.7 million business and residential telephone lines and 77,000 broadband residential and business customers. Operating initially in Hong Kong, this sector intends to expand into Greater China.

Global Communications Services consists of two business units: Mobility Services and Connectivity Services. PCCW intends to use strategic joint ventures to allow this sector to expand regionally and globally.

The third sector is Net Enterprises, consisting of four business units: Broadband Business to Consumer Services, Business to Business Services, Data Center/Web Hosting Services and CyberWorks Ventures.

The eighth business unit within PCCW, Infrastructure Services, serves all sectors and units.

Business Units Operating Sectors
Telecommunications Services Telecommunications Services
Connectivity Services
Mobility Services
Global Communications Services
Broadband Business to Consumer Services
Business to Business Services
Data Centers/Web Hosting Services
CyberWorks Ventures
Net Enterprises


Infrastructure Services directly support all three sectors

PCCW Deputy Chairman Linus Cheung said more customers outside the SAR will be able to benefit from the Company's well-equipped Telecommunications Services sector, which employs about 15,000 people.

"We see a world of telecoms opportunities right here in Asia," said Mr. Cheung. "Our new company is already Hong Kong's leading provider of local and international services and Internet access, the second-largest operator of mobility services and a major player in broadband services as well. We will continue to build on this strong foundation.

The business units feature the following assets:


-- 95 percent Broadband availability in HK via fibre & XDSL
-- 2.1 million residence and 1.5 million business lines in HK
-- Foundation for developing Broadband infrastructure across Asia-Pacific


-- Providing global Broadband connectivity
-- Broadband fibre optic and satellite network
-- One of Asia's largest IP Backbones >1,200 Mbps


-- Wireless platform for access to NOW services
-- Wireless demand outstrips fixed line in Asia
-- Quality assets in Hong Kong that provide leverage for regional expansion
-- Nearly 1 million customers

Data Centres/
Web Hosting

-- Over 300,000 square feet of Hong Kong operations facilities
-- Leading Asian-global partnerships and strong positioning


To Consumer
-- Leading producer of converged broadband content (NOW TV-web service)
-- Entertainment, e-commerce and communications content
-- Multiple revenue streams & co-branding opportunities
-- Rapidly growing broadband base in Hong Kong

Business to

-- One-stop-shop for e-business capability
-- eLogistics, eProcurement, eMarketplace, call center, ASP, IT
-- Strong (Fortune 500) customer base in Hong Kong


-- US$780 million in strategic positions in Internet-related companies


-- Synergies with all business units
-- Cashflows from flagship investment properties
-- Revenues from Cyberport in Hong Kong
-- Revenues from Pacific Century Place in Beijing

Further increasing the efficiency of the 8 X 3 model is PCCW's adoption of a Strategic Integration Process (SIP), which will function as a communication conduit throughout the new organization.

The SIP is intended to link strategies and ensure coordination within and among sectors and business units without adding a level of bureaucracy. While addressing tasks most central to value creation, the SIP will provide Chairman Richard Li with direct access to sector Managing Directors and Business Unit Presidents.

Retaining the name Pacific Century CyberWorks was the overwhelming choice of the newly merged company and received further endorsement by focus groups of HKT staff, said Mr. Li.

The Company also has a new Executive Committee and management.

Richard Li, aged 33, is Chairman and Chief Executive of Pacific Century CyberWorks, Chairman and Chief Executive of the Pacific Century Group and Chairman of Pacific Century Regional Developments Limited. Mr. Li also chairs the Executive Committee.

Other executive management in alphabetical order:

Alexander Arena, aged 49, is Deputy Chairman of the Company's Executive Committee. Mr. Arena is also a Director of Pacific Century Regional Developments Limited.

Linus Cheung Wing Lam, aged 51, is a Deputy Chairman of Pacific Century CyberWorks and a member of the Executive Committee. Prior to the merger of Pacific Century CyberWorks and Cable & Wireless HKT, Mr. Cheung was Chief Executive of Cable & Wireless HKT and Executive Director of Cable & Wireless plc.

David Prince, aged 49, is Group Chief Financial Officer. Mr. Prince is also a member of the Company's Executive Committee.

Peter To, aged 52, is a Deputy Chairman of Pacific Century CyberWorks, and Managing Director and Chief Executive Officer of Pacific Century Regional Developments Limited.

Francis Yuen, aged 47, is a Deputy Chairman of Pacific Century CyberWorks, Deputy Chairman of the Pacific Century Group, Chairman of Pacific Century Insurance Holdings Limited and Deputy Chairman of Pacific Century Regional Developments Limited. Mr. Yuen is also a member of the Company's Executive Committee.

Norman Yuen Kee Tong, aged 51, is Deputy Chief Executive Officer of Pacific Century CyberWorks and a member of the Company's Executive Committee. Mr. Yuen is also a member of the Company's Business-to-Consumers Executive Committee.

* * *

For further information, contact

Pacific Century CyberWorks

Joan Wagner

Tel: 852 2514-8883

Fax: 852 2514-8884



Jenny Fung

Tel: 852-2883-7733

Fax: 852-2962-5021



Note: This is a shortened version of a press release issued in Hong Kong on 17th

August 2000.