HKSAR Government and PCCWCelebrate Cyberport Milestone

Hong Kong, August 9, 2004 - A major milestone in the development of Cyberport was celebrated today with a presentation of surplus proceeds to the owner, the HKSAR Government, and the developer, PCCW, on completion of the Cyberport Portion.

At a ceremony marking the first distribution of surplus proceeds from the Cyberport project, The Honourable Frederick Ma, JP, Acting Financial Secretary, received a cheque of HK$1.67 billion on behalf of the HKSAR Government. Mr Jack So, as Deputy Chairman and Group Managing Director of PCCW, accepted a cheque of HK$920 million. The surplus proceeds were distributed in proportion to the two parties' contribution to the Project, with the HKSAR Government receiving 64.5% and the developer 35.5% of the proceeds.

"The Cyberport delivers important infrastructure in support of the Government's commitment to drive the development of information technology (IT) and creation of multimedia content in Hong Kong, and this is crucial to sustaining our position as a leading digital city in the region," said Mr Ma.

"So far 29 IT and multimedia companies and organizations, including well-established multinational corporations, have leased office in Cyberport."

"It is encouraging that a strategic cluster of IT and related companies and a critical mass of professional talents are being created in this flagship for our IT industry," Mr Ma added.

"PCCW is proud to be a partner in pursuing the Government's vision of creating a unique facility that will bring together the world's top-notch players in the fields of information technology, information services, multimedia content creation and related sectors." added Mr So. "It is a bold endeavour and one that is already providing returns."

Mr So also said "A major driving force in PCCW's partnership with the Government has been our commitment to nurturing an environment in which new research and innovation can flourish, bringing benefits to the whole community. We are delighted that through the diligence of Unihub and PCCW's property arm, Pacific Century Premium Developments, we have provided a state-of-the-art environment that not only meets all of the obligations to Government but has been completed ahead of schedule."

The Bel-Air Residential Portion of Cyberport, which will be completed in phases between 2004 and 2007, is being sold in the open market. The sales proceed of the Residential Portion is the source of funding to drive the Cyberport project.

To date, Cyberport has won a number of accolades. These include a Merit Award of Excellence from the American Institute of Architects, as well as the internationally-acclaimed "Intelligent Building of the Year" award presented in New York City by the Intelligent Community Forum, which is part of the World Telecom Association. The latter is given to commercial buildings that use broadband and information systems technology to add tangible value in the form of advanced services and benefits to tenants.

About Cyberport

Cyberport - Hong Kong's IT Flagship - is a landmark project managed by Hong Kong Cyberport Management Company Limited and wholly owned by the Government of the Hong Kong Special Administrative Region (HKSAR). The project is being developed on a 24-hectare site at Telegraph Bay in the southern district of Hong Kong Island. It comprises four office buildings, a five-star LeMeridien Cyberport hotel, a retail entertainment complex, the Arcade and a premium residential development, Bel-Air, and is aimed at providing an interactive environment that will be home to a strategic cluster of about 100 IT companies and 10 000 IT professionals. The project is being completed in phases from mid-2002 to 2007.

About PCCW Limited

PCCW Limited (SEHK: 0008, ADR-NYSE: PCW) is the largest communications provider in Hong Kong and one of Asia's leading IT&T players. Hong Kong's image as a center of technology excellence continues to be enhanced by PCCW's innovation, especially in new generation fixed-line telephony, broadband, IT, wireless and delivery of home entertainment. Internationally, PCCW provides cutting-edge technical services to network operators and enables organizations to bring their business to Asia and take Asian business to the rest of the world. The Company's English name was changed in 2002 from "Pacific Century Cyberworks Ltd" to "PCCW Limited".

To learn more about PCCW, go to

For media inquiries, please call:

Hans Leung
PCCW Limited
Tel: (852) 2883 8747

Ernest Chan / Fanna Chow
Pacific Century Premium Developments Limited
Tel: (852) 2514 3910 / 2514 3953
Email: /