XN000022-1988-11-07 — Page 3

MONDAY, NOVEMBER 7, 1988

- 2

PROPOSED OFFER FOR SALE OF SHARES BY CWPLC, CWFE AND FSI

TELECOMMUNICATIONS

LIMITED {"HONG

AND

OF

OF

FINANCIAL

SALE

THE DIRECTORS OF HONG KONG KONG TELECOM" OR "THE COMPANY"), CABLE AND WIRELESS PLC ("CWPLC"}

WIRELESS (FAR CABLE AND

EAST) LIMITED

THE (CWFE) AND SECRETARY INCORPORATED (FSI) ANNOUNCE THE PROPOSED OFFER FOR

A SHARES IN HONG KONG TELECOM BY CWFE,

WHOLLY OWNED SUBSIDIARY CWPLC, AND FSI (TOGETHER THE "VENDORS").

THE VENDORS PROPOSE TO OFFER FOR SALE SUBJECT TO MARKET CONDITIONS, AN AGGREGATE OF AND 787.5 MILLION SHARES (THE "OFFER SHARES"), OF BETWEEN 6.4 AND 7.1 PER CENT OF HONG KONG CAPITAL.

IN EQUAL PROPORTIONS, BETWEEN 712.5 MILLION

A REPRESENTING

TELECOM'S

OFFER (THE **COMBINED

THE IT IS PROPOSED THAT CONSIST OF AN OFFER FOR SALE IN HONG KONG (THE "HONG KONG PUBLIC OFFERING IN THE

INTERNATIONAL

OFFERING

INTERNATIONAL OFFER").

++

ISSUED

OFFER"}

TOTAL

SHARE

WILL OFFER"}, A UNITED STATES (THE "U.S. OFFER"} AND AN COVERING OTHER PARTS OF THE WORLD (THE

TELECOM

THE SHARES OF HK$0.50 EACH IN THE CAPITAL OF HONG KONG (THE 'SHARES") ARE ALREADY LISTED ON THE STOCK EXCHANGE OF HONG KONG LIMITED AND APPLICATION WILL BE MADE TO LIST THE SHARES, IN

ON ("ADSS"),

THE NEW OF AMERICAN

EXCHANGE.

DEPOSITARY SHARES

THE FORM YORK STOCK

FINALLY

THE

THE EXACT SIZE OF EACH OFFER AND THE PRICE WILL NOT BE

UNTIL DECIDED

EARLY DECEMBER WHEN IT IS INTENDED THAT PROSPECTUSES IN RESPECT OF EACH OFFER WILL BE PUBLISHED.

THE COMBINED OFFER

HONG

KONG AN

WIDEN THE PURPOSE OF THE COMBINED OFFER WILL BE TO

BASE

PURSUANT AND,

ΤΟ TELECOM'S LOCAL AND OVERSEAS SHAREHOLDER

KONG LIMITED, UNDERSTANDING REACHED WITH THE STOCK EXCHANGE OF HONG

REDUCE TO INCREASE PUBLIC PARTICIPATION IN HONG KONG TELECOM, AND

INVESTMENT IN LINE WITH HONG KONG GOVERNMENT'S EQUITY POLICY.

ITS STATED

COMPRISE BETWEEN THE HONG KONG OFFER IS EXPECTED INITIALLY TO

AS A 425 MILLION AND 500 MILLION OFFER SHARES AND WILL BE STRUCTURED

FINANCIAL INSTITUTIONS AND COMBINATION OF A PLACING WITH CERTAIN

A

PUBLIC OFFER FOR SALE.

THE

DIRECTED

AT

UNDER THE U.S. OFFER, IT IS INTENDED THAT 187.5 MILLION SHARES,

WILL ADS8, REPRESENTED BY

BE PUBLICLY OFFERED IN THE USA. OFFER OF 100 INTERNATIONAL

MILLION SHARES WILL BE INVESTORS IN VARIOUS OTHER JURISDICTIONS.

/IN ORDER