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31 Mar

New World PCS and Hong Kong CSL Mobile Merger Completed

New World Development Company Limited ("New World Group" or the "Group"; Hong Kong stock code: 0017) and New World Mobile Holdings Limited ("NWM", Hong Kong stock code: 0862) jointly announced today the completion of the merger of the mobile telecommunications businesses of New World PCS Limited ("NWPCS") and Hong Kong CSL Limited ("CSL"). The merged group will be known as the CSL New World Mobility Group.

Following the completion, NWPCS has ceased to be a subsidiary of NWD and NWM while New World Mobility will be embarking on an exciting and historical phase of development.

"We are thrilled to announce the completion of the merger, one of the most substantial moves in the Hong Kong mobile industry. The merger creates enormous opportunities and brings about synergies for both companies for further growth," said Dr Henry Cheng Kar-Shun, Managing Director of New World Group and Chairman of NWM.

The merged company is Hong Kong' s number one mobile operator in terms of revenue, profitability and customers, with a 34% customer market share. All three brands of NWPCS and CSL - New World Mobility, 1O1O and One2Free - will be retained as they enjoy strong brand recognition across key market segments.

Looking ahead, NWM will direct its efforts to growing mobile Internet services and information technology outsourcing services in Mainland China while holding its 23.6% interest in the merged entity.

Consent to the merger was obtained from the Telecommunications Authority of Hong Kong on 22 March 2006 and by New World Mobile Holdings' shareholders at a shareholder meeting on 24 March 2006.

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New World Development Company Limited

New World Development Company Limited (Hong Kong stock code: 0017), established in Hong Kong in 1970 as a property development company, has gradually developed into one of Hong Kong's leading conglomerates. The Group, listed in Hong Kong in 1972, now has a total asset value exceeding $120 billion. The Group expanded its core businesses to include property, infrastructure, service and telecommunications. As at the date of this press release, the Group has an effective interest of approximately 55% in NWS Holdings Limited (Hong Kong stock code: 0659), 71% in New World China Land Limited (Hong Kong stock code: 0917) and 58% in New World Mobile Holdings Limited (Hong Kong stock code: 0862).

New World Mobile Holdings Limited (Hong Kong stock code: 0862), operates its technology-related businesses including mobile Internet services and information technology outsourcing services in Mainland China through New World CyberBase Solutions (BVI) Limited, the Company's wholly-owned subsidiary acquired from New World CyberBase in October 2005. The Company also holds a 23.6% interest in the CSL New World Mobility Group,the merged entity that integrates leading mobile communications services of CSL and the Company's former subsidiary - New World PCS Limited, following the completion of the Merger Agreement with Telstra CSL and Telstra in March 2006. The Company's major shareholder is New World Development Company Limited (Hong Kong stock code: 0017).