HONG KONG - Hutchison Whampoa Limited ("Hutchison") through its wholly owned subsidiary has entered into an agreement with Computer And Technologies Holdings Limited ("C&T"). Under the agreement, C&T will issue 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, which is at 6% premium over the 30-day trading average of the stock price of C&T. In addition, C&T will grant to Hutchison 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.

The agreement will enable Hutchison to leverage the technical expertise and resources of C&T for the growing internal electronic commerce requirements of the Group's business divisions - a key strategy of Hutchison to tap the potential of the Internet both within its existing businesses and for new ventures.

On the other hand, the agreement will enable C&T to accelerate its development in the e-commerce consulting services as well as the electronic procurement portal businesses.

"We have a strategic vision to make Hutchison the market leader in the e-economy. C&T shares this vision and can provide the kind of technical expertise and management capability to facilitate our growth in the new millennium." said Mr Canning Fok, Group Managing Director of Hutchison.

"C&T has proven itself to be one of the most capable system integration services companies in Hong Kong with their recent success with us in ESD project awarded by the Hong Kong SAR Government." Mr Fok added.

"It is our pleasure to partner with Hutchison in this important agreement which I consider as another milestone of C&T." said Mr C. S. Ng, Chairman and Managing Director of C&T. "We have been successfully developing ourselves as the premium system integration services provider in China and Hong Kong through the last few years. It has always been our intention to line up strategic partners so as to reveal fully the potential of C&T. We are glad that we are able to work with our best choice, Hutchison."

C&T, through its subsidiaries collectively, has been a solution provider to various business divisions of Hutchison in providing high-quality systems integration and professional services. Recently, C&T served the Hutchison-Compaq consortium as the IT partner for the development of the high-profile Electronic Service Delivery scheme for the Hong Kong SAR Government.

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 development and holdings; hotel development and management, retail, manufacturing and other services; and energy and infrastructure. For more information, please visit www.hutchison-whampoa.com

About Computer And Technologies Holdings