In response to the announcement made by PCCW Ltd regarding the changes to the expected timetable for its proposed privatisation, Hong Kong Exchanges and Clearing Limited (HKEx) has announced revised arrangements for PCCW futures and option contracts.

Subject to the sanction of the High Court on 1 and 2 April 2009, the following corporate action will be taken:

PCCW Futures

Trading Arrangements

Once the High Court sanctions the proposed privatisation, there will be no PCCW futures contracts available for trading after the LDD.

Margining, Clearing and Settlement Arrangements

All outstanding PCCW futures contracts (regardless of their maturities) will be converted into their cash values based on the cash offer price of $4.50 per share on 6 April 2009, the business day immediately after the LDD.

PCCW Options

Trading Arrangements

Once the High Court sanctions the proposed privatisation, there will be no PCCW option contracts available for trading after the LDD.

Margining, Clearing and Settlement Arrangements

All outstanding PCCW option contracts (regardless of their maturities) will be converted into their intrinsic values in cash based on the cash offer price of $4.50 per share on 6 April 2009 , the business day immediately after the LDD.

Important Notes

HKEx has reminded Exchange Participants to notify their clients holding positions in the PCCW futures and option contracts of the above arrangements.

If the proposed privatisation is not sanctioned by the High Court, the cash conversion will not be made and the PCCW futures and option contracts will still be available for trading (subject to any further announcements by PCCW).