(Hong Kong, 12 November 2006) Li Ka Shing Foundation ("LKSF") announced today that Li Ka Shing (Canada) Foundation ("LKSCF") and Li Ka Shing Foundation Limited ("LKSFL") have each signed a conditional agreement with Mr Francis Leung to acquire a total of 12% of the shares in PCCW Limited ("PCCW"). Details of the transaction are as follows:

• Consideration for the acquisition of the 12% stake, which will be held respectively by LKSCF and LKSFL, totals approximately HKD 4.85 billion.



• Upon completion of the transaction, LKSCF will hold a 2% stake in PCCW. The consideration will be paid by cash on hand, derived from earlier donation to LKSCF originated from Mr Li Ka-shing, after allocation of parts of the donation to charitable projects and other investments by LKSCF.



• Upon completion of the transaction, LKSFL will hold a 10% stake in PCCW. This foundation, which owns huge assets and has already made considerable investments in a lot of long-term projects, does not intend to divest its current investment. Hence, Mr Li will make a new donation of HKD 4.04 billion to LKSFL for it to acquire the 10% PCCW.



• LKSF will hold the 12% stake in PCCW as a long-term investment.



• The transactions are subject to certain conditions being met.

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