XN000022-1993-07-26 — Page 2

MONDAY, JULY 26, 1993

1

STATEMENT ON TV PURCHASE

*

IN RESPONSE TO MEDIA ENQUIRIES ABOUT THE PURCHASE BY THE NEWS CORPORATION LIMITED OF A CONTROLLING INTEREST IN HUTCHVISION LIMITED (WHICH OWNS 48 PER CENT OF HUTCHVISION HONG KONG LIMITED), A GOVERNMENT SPOKESMAN TONIGHT (MONDAY) SAID THERE WAS NOTHING IN THE REGULATORY FRAMEWORK GOVERNING HUTCHVISION HONG KONG LIMITED'S LICENCE WHICH PROHIBITED THE SALE.

THE SPOKESMAN ADDED THAT THE RESPONSIBILITY FOR MEETING THE TERMS OF THE LICENCE WOULD CONTINUE TO REST WITH THE LICENSEE, THE MAJORITY SHAREHOLDING OF WHICH RESTS WITH THE LI FAMILY AND HUTCHISON WHAMPOA LIMITED.

"HUTCHVISION HONG KONG LIMITED HAD PROVED A RESPONSIBLE LICENSEE, AND HAD OPERATED IN ACCORDANCE WITH ITS LICENCE CONDITIONS.

"WE ARE CONFIDENT THAT THIS SITUATION WILL CONTINUE UNCHANGED FOLLOWING THE PURCHASE THAT HAS BEEN ANNOUNCED, THE SPOKESMAN SAID.

**

THE SPOKESMAN ALSO POINTED OUT THAT NO DIRECT COMPARISON COULD BE MADE WITH THE PREVIOUS PROPOSAL THAT NEWSCORP SHOULD ACQUIRE MORE THAN 15 PER CENT OF THE VOTING CONTROL OF TVB.

HUTCHVISION AND TVB HOLD DIFFERENT LICENCES AND ARE REGULATED UNDER DIFFERENT ORDINANCES - RESPECTIVELY, THE TELECOMMUNICATION AND THE TELEVISION ORDINANCES.

THE DIFFERENT FORM OF REGULATORY CONTROL IS DERIVED FROM CONSIDERATIONS REFLECTING THE DIFFERENT TYPES OF SERVICE

POLICY OFFERED BY THE TWO BROADCASTERS.

SATELLITE BROADCASTERS LIKE HUTCHVISION HONG KONG LIMITED ARE FROM THE GOVERNMENT'S POINT OF VIEW REGIONAL BROADCASTERS WHICH ARE BASED IN HONG KONG AND WHOSE SERVICES MAY ALSO BE RECEIVED TERRITORY.

"LOCAL TERRESTRIAL TELEVISION BROADCASTERS LIKE TVB SERVICE WHICH IS ONE OF THE CORE ELEMENTS OF OUR LOCAL MEDIA.

WITHIN THE

PROVIDE

BROADCAST

A

"WE WISH TO ENSURE AS FAR AS POSSIBLE THAT LOCAL TELEVISION REFLECTS LOCAL ASPIRATIONS AND PRESERVES DIVERSIFIED SOURCES OF INFORMATION AND ENTERTAINMENT FOR THE HONG KONG COMMUNITY.

*T

HUTCHVISION HONG KONG LIMITED'S LICENCE IS NON-EXCLUSIVE AND BROADCASTERS COULD BE ANY NUMBER OF ADDITIONAL SATELLITE TELEVISION LICENSED TO UPLINK FROM HONG KONG.

HAND "TVB AND ATV ON THE OTHER

ENJOY EXCLUSIVE USE OF OUR

TERRESTRIAL TELEVISION CAPACITY.

"OUR REGULATORY REGIME REFLECTS THESE DIFFERENCES BY ALLOWING FOR MORE FLEXIBILITY FOR SATELLITE BROADCASTERS.

BY ARE

NO

UP TO 49 PER CENT OF HUTCHVISION HONG KONG LIMITED MAY BE

KONG NON-HONG

RESIDENTS (UNQUALIFIED PERSONS) AND RESTRICTIONS ON HOLDINGS BY OWNERS OF INTERESTS ETC. (DISQUALIFIED PERSONS).

HELD

OTHER

THERE MEDIA

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