Hutchison Telecom expects to declare a special dividend of HK$6.75 per share following the completion of the Hutchison Essar transaction

(Business News & Technology News, 26 Feb 2007)

Hutchison Telecommunications International Ltd has announced the intended use of proceeds from the sale of its interest in Hutchison Essar. The company also reiterated its strategy to remain one of the leading telecommunications operators in the world.

Hutchison Telecom recently announced the proposed disposal of its interests in Hutchison Essar for a cash consideration of approximately HK$87 billion($11.1 billion), representing a significant premium. The proposed disposal unlocks substantial value for its shareholders, enabling the company to generate an expected gain before tax of US$9.6 billion (HK$75 billion) equivalent to HK$15.75 per share. This will not only bring tremendous benefit to shareholders today, but uniquely position Hutchison Telecom for future development.

On completion, the Board of Hutchison Telecom expects to declare a special dividend of approximately HK$6.75 per share or approximately US$12.96 per ADS.

Following the completion, Hutchison Telecom will become one of the best capitalized telecom operators in the region, an unparalleled advantage when it comes to developing new opportunities. After the special dividend and applying up to US$1.8 billion (HK$14 billion) to reduce indebtedness, the company intends to retain around US$5 billion (HK$40 billion) to reinvest in both its existing operations and new opportunities. Hutchison Telecom also intends to establish a dividend policy which will be announced during the company's interim results in August.

Canning Fok, Chairman, Hutchison Telecom, said: "We have generated a superb return for shareholders from our investment in India and I will be pleased to recommend to the board of Hutchison Telecom a special dividend on the completion of the transaction."

"Hutchison Telecom remains well positioned to continue as a leading telecom operator. Following the transaction I expect the Company to continue to deliver exceptional returns to shareholders," continued Fok.

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