Hutchison Whampoa Limited

Hong Kong, August 20, 2001 - TOM.COM LIMITED ("TOM", stock code: 8001), announced today that it has entered into five separate agreements with leading players in China's outdoor media market. The five companies - Beijing Yanhuang Times Advertising Corporation ("Yanhuang"), China Media Network (B.V.I) Limited ("CMN"), Tianming Advertising Co. Ltd ("Tianming"), Qilu International Advertisement Company ("Qilu") and Qingdao Chunyu Advertising Co. Ltd ("Chunyu") - are all leaders in key regions in China, including Beijing, Guangdong, Shandong, Sichuan and Henan.

TOM has signed a Memorandum of Understanding (MOU) each with Yanhuang, Tianming, Qilu and Chunyu for a majority stake in each company. TOM has also entered a separate subscription agreement with CMN for a 65% stake in its outdoor media business. (See below for terms of each transaction)

The five new ventures will strengthen TOM's existing outdoor media business in China - through Shanghai Maya Cultural Transmission Company Ltd ("Maya Cultural") and Kunming Fench Star Information Industry Ltd ("Fench Star"). With these acquisitions, TOM has built the largest outdoor media network in China in terms of asset scale, revenue and profitability.

TOM's nationwide outdoor media network will span Beijing and Shanghai, and five provinces -- Guangdong, Shandong, Sichuan, Yunnan and Henan. TOM's total advertising space will be more than 134,000 square metres with an estimated annual revenue of over HK$350 million in 2001 based on historical results and expected business growth.

TOM aims to build and expand China's outdoor media advertising market by acquiring and integrating the larger and highly profitable companies with quality outdoor media assets in key China cities. With a remarkable geographical coverage and higher market penetration, TOM is building a solid foundation for further expansion nationwide.

Mr. Sing Wang, Chief Executive Officer and Executive Director of TOM, said, "Building a leading outdoor media network in China is a cornerstone of TOM's cross media strategy. These strategic moves are important building blocks for further expansion in China's burgeoning outdoor media market which promises attractive profit margins and investment returns."

YANHUANG ACQUISITION

Yanhuang is the second largest private outdoor media company in Beijing with diversified outdoor media assets ranging from street billboards, light boxes to information kiosks in prime locations.

Under the MOU, TOM intends to acquire a 50% stake in Yanhuang for approximately HK$62.57 million, out of which approximately HK$13.06 million will be paid in cash and the rest via the issue of 8,986,173 TOM shares at HK$5.51 per share.

The Yanhuang acquisition will form the base for TOM's further expansion in northern China especially to key cities like Tianjin. It will also offer TOM competitive edge to capture opportunities of the 2008 Olympics.

CMN ACQUISITION

China Media Network (B.V.I.) Limited is one of Guangdong's largest outdoor media operators. It has also established a strong presence in the outdoor media sector in Beijing and Chengdu. Its core outdoor assets are bus shelter light boxes, roadmap light boxes and bicycle stand light boxes.

TOM will inject HK$27.30 million into CMN for a 65% control in its outdoor media business. Under the agreement, TOM will have a call option, exercisable within six months from 30 June 2003, to purchase the remaining 35%.

CMN will be the flagship for TOM's planned expansion in southern China.

TIANMING ACQUISITION

Tianming is based in Zhengzhou, capital city of Henan (China's most populous province and a key market in central China). Tianming owns a strong portfolio of assets ranging from unipoles, double-deck buses advertising to archway signages. The company's bus body advertising fleet is the largest in Zhengzhou.

Under the MOU, TOM intends to acquire a 50% stake in Tianming for approximately HK$53.25 million, out of which approximately HK$15.09 million will be paid in cash and the rest via the issue of 6,924,009 TOM shares at HK$5.51 per share.

Tianming's established presence in Zhengzhou will facilitate TOM's outdoor business expansion in key commercial cities of the central China region.

QILU ACQUISITION

Qilu is the largest outdoor media company in Shandong province. TOM will be well-placed for strategic expansion in the northeastern market after this transaction.

Under the MOU, TOM intends to acquire a 60% stake in Qilu for approximately HK$104.14 million, out of which about HK$21.74 million will be paid in cash and the rest via the issue of 14,955,859 TOM shares at HK$5.51 per share.

CHUNYU ACQUISITION

Chunyu is the largest outdoor media company in Qingdao, the richest city in Shandong province. The alliance with Qilu and Chunyu will render TOM the sole leader in the outdoor media sector in Shandong.

Under the MOU, TOM intends to acquire a 51% stake in Chunyu for approximately HK$44.26 million, out of which about HK$9.24 million will be paid in cash and the rest via the issue of 6,356,240 TOM shares at HK$5.51 per share.

UPDATE ON TOM'S EXISTING OUTDOOR BUSINESS

Meanwhile, Maya Cultural has just secured huge advertising spaces on the exteriors of 16 buildings in prime locations in Shanghai. Maya Cultural is also constructing new bicycle shelter light boxes recently due to strong demand - with over 85% in occupancy rate. The October APEC meeting, to be held in Shanghai, will help to fuel demand of advertising space in the city.

Fench Star has secured some sizeable contracts. These developments include a joint venture with Yunnan Transport Bureau with exclusive right to build 100 unipoles along all major highways in Yunnan province, with an estimated annual income of about HK$45 million. It has also established strategic partnerships with Yunnan Television and Yunnan Daily and added 18,000 square metres of new advertising space.

INDUSTRY OUTLOOK

In 2000, spending on outdoor advertising accounted for 16% of total advertising spending in China. The outdoor advertising market is expected to have a compound annual growth rate of 15% from 1994 to RMB5 billion in 2002. The imminent entry of China to the World Trade Organisation will open up the vast market and lead to increased competition between domestic and international brands. This will have positive implications for the outdoor media market as outdoor advertising is particularly effective for brand building of consumer goods.

China's outdoor media market is currently highly fragmented with over 80% of outdoor media controlled by small or medium-sized advertising companies. These small companies usually have market share of less than 1%. The small scale of business limits their profitability as they lack bargaining power with key advertisers. In consolidating these players, TOM will be able to benefit from economies of scale and hence achieve a higher profit margin.

(Notes to Editors)

About Yanhuang

Beijing Yanhuang Times Advertising Corporation was founded by Ms. Zhao Song Qing in 1993. Ms. Zhao has been involved in the organisation of the Asian Games, World Women Congress and the 50th anniversary of the establishment of the PRC. The company is the second largest private outdoor media company in Beijing. Its quality media assets are located at key transport routes and prime commercial and residential areas. The company is also engaged in advertising agency business which accounts for around 40% of its revenue. Total revenue for 2000 was over HK$51.7 million with a net profit of approximately HK$7.9 million.

About CMN

China Media Network (B.V.I.) Limited is one of the largest outdoor media operators in Guangdong. It has also established presence in Beijing and Chengdu. Cannon Shum, General Manager, has extensive experience in corporate financing and advertising in Hong Kong and China. He had worked at the marketing department of P&G. The company now holds development contracts in these three first tier cities to extend its coverage and scale of operation. The company holds the franchises for all roadmap light boxes in Chengdu. It is also a top player in bus shelter light box operation in Guangzhou. The company has established an international customer base with clients such as Coca-Cola, Kodak, Nokia, Ericsson, Motorola, McDonald's, etc. Total outdoor media revenue in 2000 was over HK$19.2 million.

About Tianming

Tianming Advertising Co. Ltd was founded by Mr. Jiang Ming in 1993. He is publisher of China Entrepreneur and won the Henan 10 Most Outstanding Youth award. Apart from outdoor advertising, it also engages in an advertising agency business which accounts for 30% of its total revenue. The company's prime assets are unipoles, double-deck bus advertising, billboards and archway signages. Tianming operates the largest bus advertising fleet in Zhengzhou. It has also completed the construction of 20 additional unipoles along Zhengzhou Airport Expressway. In 2000, it had a total revenue of HK$31.7 million and net profit of over HK$11 million.

About Qilu

Established in 1993, Qilu International Advertisement Company was the largest outdoor media company in Shandong, a populous province with the third highest GDP in China. President Meng Xian Wei had eight years' experience in advertising. Qilu is based in Jinan with a strong presence in the unipole sector. Its wide range of outdoor assets include newsstand light boxes, lamp post light boxes, taxi stand light boxes and billboards. Qilu has an extensive client base with advertisers such as China Mobile, Audio VCD, Huaxia Bank, Huabao Air Conditioners, Nokia, Ericsson, Motorola, etc. In 2000, Qilu had a revenue of over HK$61.3 million and a net profit of around HK$15.5 million.

About Chunyu

Chunyu was established in the beginning of the 90s in Qingdao and majority-owned by chairman Mr. Ouyang Gang. General Manager Zhang Zhen Yong has worked for national advertising companies and has rich working experience in the advertising sector. As the largest outdoor media company in Qingdao, its outdoor media assets include unipoles and billboards along the Qi-qing highway and the Airport Road. As yachting events of the 2008 Olympics will be held in Qingdao, the demand for advertising space in the city is expected to surge in the coming years. In 2000, it had a revenue of HK$14.1 million and a net profit of around HK$5.7 million.

About TOM.COM LIMITED

TOM.COM LIMITED (TOM) was founded in October 1999. TOM is a joint venture between Hutchison Whampoa Ltd., Cheung Kong (Holdings) Ltd. and other strategic investors. TOM was listed on the Growth Enterprise Market of the Stock Exchange of Hong Kong in March 2000 (stock code: 8001). TOM's head office is in Hong Kong, with regional offices in Beijing, Shanghai, Guangzhou and Kunming.

TOM has pioneered the cross media strategy, building a portfolio of online and offline media assets through acquisitions and organic growth. TOM's business now includes outdoor media advertising, Kunming Fench Star Information Industry Ltd. (Fench Star) and Shanghai Maya Cultural Transmission Company Ltd. (Shanghai Maya Cultural); sports event management and advertising, YC Companies; print media, Yazhou Zhoukan, PC Home Publishing Group and Cit Publishing Ltd. in Taiwan; online media businesses, CN TOM, HK TOM, 163.net, Shawei.com; and broadband content and services provision, Shanghai Maya Online Broadband Network Company Ltd. (Shanghai Maya Online) and GreaTOM.

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For press enquiries:
Rachel Chan, TOM.COM LIMITED
Tel: (852) 2121 7810
Fax: (852) 2127 7576
Email: rachelc@hk.tom.com

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