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Press Release
3 Apr 2002
New Directors Strengthen Wharf New T&T's Growth Plan
Wharf New T&T Limited announced today the appointment of Mr. Chan Wing Kee and Mr. Alan Smith to its Board as independent, non-executive Directors.

Mr. Chan, GBS, JP, is Managing Director of Yangtzekiang Garment Manufacturing Company Limited and Chairman of Yangtzekiang Aluminium Corporation Ltd. In addition, he is a Deputy to the 9th National People's Congress of China; Chairman of Small and Medium Enterprises Committee of the H.K.S.A.R. and Chairman of Chinese Manufacturers' Association of Hong Kong.

Mr. Smith, JP, was formerly Chairman of Jardine Fleming Holdings Limited and recently retired as Vice Chairman, Asia Pacific, of Credit Suisse First Boston. He currently serves on the Board of a number of public companies listed in Hong Kong and Singapore.

Announcing the appointments, Wharf New T&T Chairman & CEO Mr. Stephen Ng said, "Mr. Chan and Mr. Smith bring with them a wealth of vision and experience in business. We are very honoured by their agreement to join our Board and we will definitely benefit greatly from it. This will help us accelerate our already very high growth in the critical years to come which will see the full liberalisation of the local telecommunications market."

Wharf New T&T broke into net profitability in 2001 to become the first new FTNS (Fixed Telecommunications Network Services) operator to do so. It did so with a 6% market share through targeted marketing and excellent cost management. Notwithstanding the unfavourable general business environment during most of 2001, with business closures and downsizing prevalent, Wharf New T&T has been able to achieve outstanding financial results including:

- Installed base of fixed lines grew by close to 70% to 240,000 and tripled in the past 24 months.

- 6% market share overall and 11% for business sector in fixed lines.

- Total net revenue grew by 34% to $1,088 million, whereof 65% from fixed lines.

- Gross profit margin improved to 55%.

- EBITDA doubled to $227 million, representing a sound margin of 21%.

- A net profit of $8 million was achieved to break into profitability.

"In the course of our strategic moves in the past few years, the Company has successfully transformed itself from a low value IDD company to a high value infrastructure-based FTNS operator. This change is extremely important for Wharf New T&T to springboard into a full-fledged telecom player, now the second largest FTNS operator in Hong Kong, in sustaining its long term growth while challenging the incumbent operator, " Mr. Ng added.
About Wharf New T&T

Wharf New T&T, licensed in 1995, is the fastest growing network operator after the opening of Hong Kong's fixed telecommunication market. Since its launch, the Company has continually sought to upgrade its services and deliver competitive products at competitive prices to Hong Kong businesses and consumers.

Wharf New T&T is a member of The Wharf Group of companies, one of the largest groups of companies in Hong Kong. The Group also owns i-CABLE Communications Limited, the No. 1 Television Station in Hong Kong for News, Movies and Sports, as well as a leading Internet access service provider.

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