Media Release

31 May 2000

Singtel doubles its stake at APT

Announcement

The Board has been informed today by SingaSat that on 31st May, 2000 it acquired one-seventh interest in APT International (the "Acquisition") from China Travel, which was one of the six principal shareholders of APT International prior to the Acquisition. APT International is currently holding 51% of the issued share capital of the Company. SingaSat is one of the six principal shareholders of APT International prior to the Acquisition. Upon completion of the Acquisition, SingaSat increased its shareholding in APT International from one-seventh interest to two-seventh interest and China Travel no longer has any shareholding in APT International. SingaSat will appoint additional directors to the Board of both APT International and the Company in accordance with the percentage of interests in these companies.

SingaSat is a wholly-owned subsidiary of Singapore Telecommunications Limited ("Singtel"), which is incorporated in Singapore and is principally engaged in the operation and provision of telecommunication systems and services and investment holding. The turnover of Singtel for the year ended of March 2000 was approximately US$2.86 billion (equivalent to approximately HK$22.308 billion at the exchange rate of HK$7.8:US$1) and the market capitalisation was approximately US$22 billion (equivalent to approximately HK$171.6 billion at the exchange rate of HK$7.8:US$1).

The Board believes that the change in the shareholding of APT International as a result of the Acquisition will be beneficial to the operations of the Company, which is currently in the process to expand its scope of business to include satellite telecommunication services. The Board considers that the increase of SingaSat¡¦s interest in the Company will also help reinforce the Company¡¦s competitiveness in satellite telecommunication services.

The five principal shareholders of APT Satellite Holdings Limited after the transaction are: (a) China Telecommunications Broadcast Satellite Corporation; (b) China Aerospace Corporation; (c) CASIL Satellite Holdings Limited; (d) SingaSat Private Ltd. and (e) Kwang Hua Development and Investment Limited. They jointly hold 100% interests of APT International, which is currently holding 51% of the issued share capital of the Company.

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