Hutchison Telecommunications (Australia) Limited heads
towards market cap of $1 billion with launch of IPO

12 July 1999

Hutchison Telecommunications (Australia) Limited (HTAL) today launched its Initial Public Offer, which will open to retail investors on July 19 and should see the Company list on the Australian Stock Exchange in mid August.  Based on the retail application price of $2 per share, HTAL's market capitalisation on listing will be close to $1 billion.

The existing shareholders and HTAL are offering 140 million shares in the company, representing 29.5% of the issued capital following completion of the Offer.   Existing shareholders, Hutchison Communications (Australia) Pty Limited¹ and Leanrose Pty Limited² will retain 54% and 16.5% of the issued capital respective.

The Offer comprises an institutional offer of at least 95 million shares open to Australian institutions and certain international institutions, as well as a retail offer of up to 45 million shares open to HTAL employees, selected HTAL dealers and Australian retail clients of the syndicate brokers.

While the retail application price has been set at a maximum of $2 per share, the final price payable in the institutional offer will be determined through an institutional book build process.  Retail investors will pay the lesser of the retail application price and the final price.

HTAL expects to raise net proceeds of approximately $215 million.  It will use 50% of this new equity funding to prepay debt outstanding or apply to cancel facilities available under part of the Company's current loan arrangements.  The balance will be used to finance the development of the Company's CDMA network and for general business requirements.

HTAL Managing Director, Mr Barry Roberts-Thomson unveiled the Company's Offer along with plans to develop a unique communications service and invest in further development of HTAL's existing businesses.

"Telecommunications is one of the fastest growing industries in Australia, with compound annual revenue growth of more than 9% between 1993 and 1998," Mr Roberts-Thomson said.

"An important driver of this growth continues to be the appeal of mobile communications services, which are now used by around one in three Australians.

"HTAL intends to position itself at the forefront of this growth, through the development of its own wireless Code Division Multiple Access (CDMA) network."

Mr Roberts-Thomson said network ownership was a critical step for HTAL and its plans to develop the market for additional wireless services. HTAL believes increasing usage of Internet, fax and data services will see more customers dedicate their existing phone lines to data and look for new services to cater for their voice communications.

According to Mr Roberts-Thomson, HTAL's CDMA service is ideal for voice communications as it combines the simplicity and convenience of wireless communications with the value of two services delivered by one phone.

"Customers in our Sydney and Melbourne licence areas will be able to rely on just one phone for all their voice communication needs," Mr Roberts-Thomson said.  "When used within their registered local area, the phone will act like a local phone and provide untimed local calls.  When used outside this area, it will act like a mobile phone and provide mobile calls, with national coverage expected to be provided via a roaming agreement."

The HTAL CDMA network is already under construction with the Company planning a full commercial launch in the first half of 2000.

"The CDMA service complements our existing range of communication services, which includes national GSM resale, national paging and messaging, information services, domestic and international long distance resale and a range of Internet services."

According to Mr Roberts-Thomson, the CDMA business will benefit from the sound base provided by the Company's existing operations.

"HTAL has recorded strong growth in revenue and earnings during the last three financial years," he said.

"In 1998, total revenues were $259 million, with revenue from GSM resale contributing around 83% of this amount."

The Company's existing business is expected to continue its strong growth in 1999.  Beyond 1999, the CDMA business will increasingly become the key driver of HATL's future revenue growth and profitability.

Mr Roberts-Thomson said the Offer and ongoing development of HTAL's CDMA network were taking place alongside the rebranding of the Company's operations.

"We expect to introduce the highly successful Orange brand across all products and services by the end of the year." he said.

"Orange is a global brand, based on a set of values that put people ahead of technology," Mr Roberts-Thomson said.

"Wherever customers experience Orange, they can depend on it to deliver outstanding quality and value."

ENDS

For further information, please contact:

HTAL has lodged a prospectus dated 5 July 1999 with the Australian Securities and Investments Commission. Copies of the prospectus can be obtained from the Joint Global Co-ordinators or other members of the broking syndicate. An application for shares in HTAL will only be accepted on an application form attached to, or (in the case of a personalised application form) accompanied by a copy of the prospectus.

¹ HCAPL is an indirect wholly owned subsidiary of Hutchison Whampoa Limited

² Leanrose represents the family interests of HTAL Managing Director, Barry Roberts-Thomson and HTAL Director of Sales & Distribution, Tim Roberts-Thomson