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Hutchison Whampoa sets up IT Resource Centre
with Computer and Technologies Holdings

22 February 2000

HONG KONG - Hutchison Whampoa Limited ("Hutchison") through its wholly owned subsidiary has formed a joint venture with Computer And Technologies Holdings Limited ("C&T") to set up an Information Technology Resource Centre for developing IT and related solutions and services, particularly for the e-commerce industry.

Drawing upon the combined financial strength and technical resources of Hutchison and C&T, the Resource Centre will have a pool of expertise in application development, application support, quality assurance and systems integration, and will benefit the development of e-commerce in the Hutchison Group.

The Resource Centre will operate as a fifty-fifty joint venture under a separate management team to be jointly appointed by Hutchison and C&T. Initial plans are made for the set up to be located in Shenzhen, with operations commencing within six months.

"We are pleased to be partnering C&T again in this venture and we are confident that the Information Technology Resource Centre can deliver quality services for the e-commerce industry utilising state-of-the-art technology," said Mr Canning Fok, Group Managing Director of Hutchison.

"We are delighted to work with Hutchison. With our proven track record, we are able to provide all-rounded, cross-industry e-commerce solution services to customers. Being the e-business arm of Hutchison, the Resource Centre do help deliver the promising e-commerce potential both within its existing businesses and new ventures," said Mr C.S. Ng, Chairman and CEO of C&T.

C&T has been collaborating with Hutchison for years in providing systems integration and application development services to its various business divisions, including the recent ESD project awarded by the government.

This joint venture agreement follows an earlier agreement whereby C&T issued to Hutchison a 2-year convertible bond in the principal sum of approximately HK$230 million, convertible at an initial conversion price of HK$7.9. In addition, Hutchison was also granted an option to subscribe for shares in C&T of up to 7.5% of C&T's current issued share capital at the option price of HK$7.9, subject to adjustments. If both rights are exercised, Hutchison will ultimately hold approximately 17% of the enlarged issued share capital of C&T.

About Hutchison Whampoa
Hutchison Whampoa is a Hong Kong-based conglomerate with origins dating back to the 1800's. With a market capitalization of US$53 billion, Hutchison is one of the largest companies in the territory. In 1998, consolidated turnover was over US$6.6 billion, and after-tax earnings were approximately US$1.1 billion. With 80,000 employees worldwide, Hutchison operates five core businesses in over 26 countries: ports and related services; telecommunications; property and hotel investment and management, retail, manufacturing and other services; and energy and infrastructure. For more information, please visit .

About Computer and Technologies Holdings
Founded in 1991, Computer And Technologies Holdings Limited is listed on the Stock Exchange of Hong Kong (0046). It has built its business on a vision to deliver competitive advantage for enterprises to progress by optimising their information systems efficiently. In partnership with its customers, the company brings experience and knowledge in systems integration to build and enhance their information infrastructure, with a specific emphasis on providing e-business solutions and consultancy services on enterprise network infrastructure and security. C&T conducts business in both Hong Kong and China. More C&T information is available at .

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For more information, please contact:

Hutchison Whampoa Limited
Laura Cheung

Tel: (852) 2128 1289
[email protected]
Nora Yong
Tel: (852) 2128 1363
[email protected]
Computer and Technologies Holdings Limited
Steve Yeung
Tel: (852) 2503 8268
[email protected]