CTEL Hong Kong Television Network Ltd. (MM)

- Group revenue down 2.8% year-on-year to HK$1,137.4 million due to International Telecoms Services (IDD) revenue fall overshadowing Fixed Telecom Network Services (FTNS) revenue gains. FTNS is now 53.2% of total revenues - FTNS subscription base for voice, broadband and pay-TV services grew by 166,000 to reached 631,000 as of 31 August 2005, a 35.7% YoY jump - Group EBITDA profit fell from HK$245.0 in FY04 to HK$65.5 million in FY05 due to reduced IDD profitability and ramp-up of FTNS marketing activities. - Inclusive of HK$237.7 million of depreciation and amortization expenses, net loss of HK$206.4 million was reported for the year ended 31 August 2005 HONG KONG, Nov. 21 /Xinhua-PRNewswire/ -- City Telecom (HK) Limited ("The Group") (NASDAQ:CTEL) today announced the annual results of 2005 for the twelve months ended 31 August 2005. "Starting from zero, we have established our "Little Kingdom", and some people would even consider our story to be a "Legend". FY05 marks our first ever full year loss, suggesting the fall of the Legend. However the net loss is within our strategic tolerance, and is in line with the trends set out in our interim results announcement," said Ricky Wong, Chairman of the Group. Group EBITDA profit fell from HK$245.0 in FY04 to HK$65.5 million in FY05 due to reduced IDD profitability and ramp-up of FTNS marketing activities. During FY05, we made substantial operating expenditure investments in brand enhancement, including the launch of the "Liu Xiang bb1000" campaign in 2H FY05. Liu Xiang, as the reigning Gold medal holder for 110 meter hurdles, is China's first male Olympic Track and Field Gold Medalist. Depreciation and amortization expenses increased by 20.7% to HK$237.7 million. Finance costs also increased from HK$175,000 to HK$54.5 million due to the interest on US$125 million senior notes issued in January 2005. "As a major shareholder and the Chairman of the Group, I should be more concerned on the development of the Group, compared to other shareholders. During the year, we received several awards and words of praises that confirmed the Metro Ethernet platform is the top choice for Hong Kong. I believe that you need great long term foresight for investment in infrastructure," Mr. Wong added. For enquiries, please contact City Telecom: Investor Relations Mr NiQ Lai, Tel: (852) 3145 4710, Fax: (852) 3145 8445, Email: DATASOURCE: City Telecom (HK) Limited CONTACT: Mr NiQ Lai, Investor Relations, City Telecom, +852-3145-4710, Fax: +852-3145-8445,

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