XN000022-1988-11-07 — Page 4

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MONDAY, NOVEMBER 7, 1988

IN ORDER TO MAXIMISE THE FLEXIBILITY OF THE COMBINED OFFER, IS INTENDED THAT THE HONG KONG OFFER MAY BE INCREASED BY UP TO 20 CENT AND THE U.S. AND INTERNATIONAL OFFERS CORRESPONDINGLY REDUCED

APPLICATIONS FROM THE ORDER TO SATISFY IN WHOLE OR IN PART PUBLIC.

IT

PER

IN

GENERAL

CAPITAL OF AT PRESENT APPROXIMATELY 79 PER CENT OF THE ISSUED

APPROXIMATELY CWPLC,

11 PER HONG KONG TELECOM IS OWNED BY CWFE AND

IS OWNED BY THE CENT IS OWNED BY FSI AND APPROXIMATELY 10 PER CENT GENERAL PUBLIC.

STATED ON THE BASIS

ABOVE,

IMMEDIATELY AFTER THE COMBINED AGGREGATE APPROXIMATELY 76 PËR OFFER, CWPLC AND CWPE WOULD OWN IN

THE

OWN SHARE

WOULD CENT OF THE

GENERAL PUBLIC CAPITAL, APPROXIMATELY 17 PER CENT AND FSI WOULD OWN APPROXIMATELY 7 PER CENT.

ISSUED

AND SUBJECT TO CERTAIN LIMITED EXCEPTIONS, EACH OF THE VENDORS

HONG KONG CWPLC WILL AGREE NOT TO DISPOSE OF ANY FURTHER SHARES, AND TELECOM WILL AGREE NOT TO ISSUE ANY NEW SHARES, FOR MONTHS AFTER THE COMBINED OFFER.,

A PERIOD OF 15

PREFERENTIAL APPLICATION RIGHTS

THE VENDORS INTEND TO GIVE

THOSE SHAREHOLDERS OF HONG

KONG IN TELECOM (OTHER THAN CWPLC, CWFE AND FSI) WITH REGISTERED ADDRESSES

RIGHTS UNDER THE HONG HONG KONG ON NOVEMBER 29, 1988, PREFERENTIAL

FOR EVERY KONG OFFER TO APPLY AT THE OFFER PRICE FOR ONE OFFER SHARE TEN SHARES THEN HELD.

REQUIRE

ANY

THESE RIGHTS WILL BE

WILL AND NON-TRANSFERABLE APPLICANTS TO GIVE APPROPRIATE DECLARATIONS AS TO COMPLIANCE WITH APPLICABLE OVERSEAS LAWS.

RESPECT PREFERENTIAL RIGHTS ARE ALSO INTENDED TO BE GIVEN IN

HONG OF APPLICATIONS IN THE HONG KONG OFFER AT THE OFFER PRICE BY

TELECOM GROUP (OTHER THAN KONG RESIDENT EMPLOYEES OF THE HONG KONG DIRECTORS AND EMPLOYEES SECONDED FROM CWPLC) FOR BETWEEN APPROXIMATELY 42.5 MILLIOM AND 50 MILLION OFFER SHARES, BEING 10 HONG KONG OFFER.

PER CENT OF THE

FOR THE PURPOSES OF DETERMINING THE

THE RIGHTS THE BENEFIT OF THE PREFERENTIAL

ON NOVEMBER TELECOM WILL BE CLOSED AT 4 PM REOPENED ON NOVEMBER 30, 1988.

PROFIT FORECAST

SHAREHOLDERS ENTITLED TO REGISTER OF HONG KONG 24, 1988 AND WILL

BE

THE DIRECTORS OF

HONG KONG

TELECOM

ANNOUNCED

ON

THE

NOVEMBER 4, 1988 THAT THE PROFIT ATTRIBUTABLE TO SHAREHOLDERS FOR SIX MONTH PERIOD ENDED SEPTEMBER 30, 1988 WAS HK$1,723.0 MILLION. THEY ALSO ANNOUNCED AN INTERIM DIVIDEND OF HK$0.11 JANUARY 25, 1989.

PER SHARE PAYABLE

ON

/IN CONNECTION