Hutchison Announces Funding Arrangements for 3G Business

date: April 17, 2002

Hutchison Telecommunications (Australia), today announced its intention to proceed with a pro rata renounceable Rights Issue of Convertible Notes (Rights Issue) to raise approximately $600 million.

The capital raising is required to fund the development of the Company’s 3G business, which includes Hutchison’s commitment to provide a $600 million equity contribution to Hutchison 3G Australia Holdings, the joint venture vehicle established as part of the alliance with Telecom Corporation of New Zealand Limited (TCNZ) for the development and operation of 3G wireless communications services in Australia.

Kevin Russell, Hutchison’s Chief Executive Officer, said “the Rights Issue provides our shareholders with an opportunity to participate in the funding of the Company’s future growth, with the potential to convert this investment into an equity holding at a later date.”

“We believe 3G represents the next phase of growth in the wireless industry and Hutchison is well positioned to be a leading entrant in this market.”

Hutchison Communications (Australia), a wholly owned subsidiary of Hutchison Whampoa Limited (HWL), which holds 57.82% of all voting shares in Hutchison, intends to take up its full entitlement under the Rights Issue. HWL will underwrite the outstanding balance.

The notes will be issued at a 60% premium to the 10 trading day volume weighted average price (VWAP) of Hutchison’s shares for the period between 6 May 2002 to 17 May 2002, subject to a minimum issue price of $0.50 per note. Shareholders will be entitled to subscribe for up to approximately 1.77 notes for each Hutchison ordinary share held, subject to the final issue price and number of notes to be issued. The final issue price and related details of the Rights Issue will be announced on 20 May 2002.

The notes will have a term of five years and will pay interest at the rate of 5.5% per annum, paid semi-annually. If the conversion right is exercised, each note will entitle the holder of the note to one ordinary share in Hutchison.

Hutchison has appointed ABN AMRO Rothschild and Salomon Smith Barney as Joint Lead Managers for the Rights Issue.

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