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Press Release
9 Mar 2006
Wharf T&T Reports 89% Increase in Profit & Five-Fold Rise in Free Cash Flow

Wharf T&T today announced its operating results for the year 2005.

- Installed base of fixed lines grew by 10% to reach 523,000 for a 13% market share.

- Retail IDD volume rose by 11% to 419 million minutes for an 8% market share.

- Consolidated turnover rose by 2% to $1,478 million overall, and by 17% for data services.

- Gross profit rose by 8% to $973 million; gross profit margin 66%.

- Net profit rose by 89% to $104 million.

- Free cash flow rose by 511% to $94 million.

Overcoming intense competition, the Company succeeded in winning and keeping customers by delivering excellent customer satisfaction for its high value products and services. That led to growth in market share as well as sound profitability and cash flow, which in turn laid a solid foundation for future growth.

Wharf T&T will rely on focus and specialization to deliver premium value to customers and prevail over the competition. To achieve that, the residential sector will henceforth be covered by wholly-owned subsidiaries i-CABLE Telecom and ec Telecom. Wharf T&T will focus its entire attention on the business sector with "Strictly Business" becoming the Company's strategic focus.

"Business customers have a right to expect business class service and will get it from Wharf T&T. We will commit the entire company's energy and resources to the business sector exclusively," says Mr. Stephen Ng, Chairman & CEO of Wharf T&T.

Wharf T&T also announced a full business integration with subsidiary COL Limited, a leading IT services veteran in Hong Kong. As IT & networking infrastructure become increasingly integral to business, this strategic move will match the complementary expertise of COL and Wharf T&T to enable the companies to stay at the cutting edge of the rapidly converging IT and telecommunications market and to provide one-stop-shop service.

"This integration between Wharf T&T and COL will set new standards for the competition. Their combined resources and their broad range of products, services and capabilities will significantly expand our customer base and opportunities for future growth." says Mr. Ng.

About Wharf T&T Limited

Wharf T&T is a leading fixed-line operator since 1995 with over HK$5 billion of investment in its own telecommunications network infrastructure in Hong Kong. Being the only FTNS operator in Hong Kong specializing in the business sector, “Strictly Business” is our mission. Our goal is to help our business customers drive their business performance through quality services and products.

Wharf T&T is the second largest fixed-line operator in the business sector with 18% market share. With over 2,225 km of extensive fibre network in the territory, Wharf T&T possesses the best-of-breed metro IP network enabling a full range of voice, data networking, internet access and video services to address the dynamic demand of business customers. In January 2006, Wharf T&T and COL were integrated. The integration brings together the best-of-breed data centre and business continuity capabilities, backed by one of the most robust telecom infrastructures, supported by sophisticated networking solution capabilities with gold accreditation from Cisco and a well renowned professional service engine to make Wharf T&T an indispensable partner for the business growth of our customers.

Wharf T&T is a core member of The Wharf Group, one of the largest conglomerate in Hong Kong. The Wharf Group also owns i-CABLE Communications Limited, the leading cable television station and Internet access service provider in Hong Kong.

For further information about both Wharf T&T and The Wharf Group, please visit Wharf T&T website at www.wharftt.com.

About COL

COL is Hong Kong's leading IT services company, with over 34 years of local experience and employing over 200 people. COL provides data centre services including facilities management, disaster recovery and full business continuity services along with professional services for application and network development. COL is also the Hong Kong distributor for world-leading hardware solutions in the areas of data storage, networking and enterprise class printing, and software solutions for business intelligence, business performance management (BPM) and human resource management. COL is a Cisco Gold Partner, an EMC Velocity Partner, a Hyperion Consulting & Reseller Partner, a Microsoft Certified Partner, and a world-wide Oracle Certified Partner.

For further information about COL, please visit COL website at http://www.col.com.hk.

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