City Telecom Announces 6-Months to 28 February 2005 Interim Results -- As of 28 February 2005, triple-play subscription base of 524,000, consisting of 282,000 voice, 203,000 broadband and 39,000 IP-TV -- Achieved position as largest alternative residential voice and broadband provider in Hong Kong, within 5 years of Fixed Telecom Services Network license grant -- Total Revenue up 1% year-on-year to HK$576 million. FTNS revenues up 25% year-on-year to HK$311 million. FTNS now 54% of total revenues and 61% of gross profits -- Net loss of HK$32 million versus HK$35 million net profit for same period last year City Telecom (HK) Limited ("The Group") today announced the interim results of 2005 for the six months ended 28th February 2005. These results marked our first reporting period whereby Fixed Telecom Network Services (FTNS) revenues have overtaken International Telecom (IDD) revenues. Within five years of receiving our FTNS license, City Telecom is now established as the largest alternative provider of residential voice and broadband services in Hong Kong. In April 2005, we launched our new 1Gbps residential broadband service. This service is backed by a branding campaign that features Liu Xiang, China's first male Olympic Track and Field Gold medalist. In the Global Information Communications Technology (ICT) industry, City Telecom's commercial launch of mass market symmetric 100 Mbps (bb100) service and symmetric 1,000 Mbps (bb1000) service puts Hong Kong into Gold class status. The next 12-24 months will require substantial investment in operating expenditure for brand enhancement and subscriber acquisition, as well as capital investment for network expansion. In addition to our established residential position, we will also be assertive in our expansion into the corporate and mobile carrier backhaul segments. Our HK$975 million senior notes issue completed in January 2005, together with internally generated cash flows, fully funds our growth roadmap towards 1.8 million homes pass, 80% of Hong Kong's total homes. "At City Telecom, we firmly subscribe to Liu Xiang's philosophy of 'If I am not capable, I will not try, but if I can, why don't I seize the opportunity?' We strongly believe that the one who runs in front of oneself, is the one who writes history," said Mr Wong. Full press release can be accessed at our web site http://www.ctihk.com.hk/ . For Media enquiries: Jessie Cheng Tel: +852-3145-4118 Email: For Investor Relations: NiQ Lai Tel: +852-3145-4710 Email: DATASOURCE: City Telecom (HK) Limited CONTACT: For media, Jessie Cheng, +852-3145-4118, or , or for investors, NiQ Lai, +852-3145-4710, or Web site: http://www.ctihk.com.hk/

Copyright