CTEL Hong Kong Television Network Ltd. (MM)

City Telecom (H.K.) Limited ("The Group") (HKSE:1137) (Nasdaq:CTEL) today announced interim results for the 6 months ended 28 February 2011. Financial performance for 1H FY2011 proves that the Group is very much on track for higher profitability driven by Fixed Telecommunications Network Service (FTNS) business, as well as lower financial costs. The Group declared an interim dividend of HK15 cents per ordinary share, up 131% from HK6.5 cents per ordinary share for the same period last year.

Highlights :

• Net profit up 44.0% year-on-year to HK$167.6 million with basic earnings per share amounted to HK$21.9 cents versus HK17.3 cents for same period last year
• Declared an interim dividend of HK15 cents per ordinary share, up 131% from HK6.5 cents per ordinary share for same period last year
• Core EBITDA increased by 16.7% year-on-year to HK$301.6 million
• Turnover grew by 5.1% year-on-year to HK$825.9 million driven by higher revenue contribution from our Fixed Telecommunications Network Service (FTNS) business of 7.6% year-on-year to HK$727.2 million
• For six months to 28 February 2011, broadband subscription increased by 25,000 net additions to 551,000, dominating 68% of total estimated market growth of 37,000

Chairman of the Group, Mr. Ricky Wong ("Mr. Wong"), said, "First of all, I would like to thank my talented team for their hard work and their contribution to the splendid performance of our Group for 1H FY2011. I expect that the financial performance for 2H FY2011 will be equally satisfactory."

For full press release, please visit http://reg.hkbn.net/ctigroup_admin/files_upload/110420_FY11_PR_E.pdf

Note to Editors

Webcast and replay for analyst presentation can be viewed at www.ctigroup.com.hk. Materials of this interim results announcement, such as presentation slides and press release can also be found at the above website.

About City Telecom/Hong Kong Broadband Network Limited

Established in 1992, City Telecom (H.K.) Limited (HKSE:1137) (Nasdaq:CTEL) provides integrated telecommunications services in Hong Kong via its own self-built fibre network. City Telecom's wholly-owned subsidiary, Hong Kong Broadband Network Limited (HKBN), is the fastest growing broadband service provider in Hong Kong. HKBN offers a diversified portfolio of innovative products that service over 1,100,000 subscriptions for broadband, local telephony and IP-TV. The Company has built a solid market position with top-of-the-line applications and practices enabling it substantial growth. The company takes great pride in developing its around 3,000 Talent force into a competitive advantage. Additional information on City Telecom can be found at www.ctigroup.com.hk

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