CWHKT<0008> - Announcement

Cable & Wireless HKT Limited

CABLE & WIRELESS HKT AND STAR TELEVISION ANNOUNCE SIGNING OF PAY 
TELEVISION AND INTERNET JOINT VENTURE AGREEMENT

Cable & Wireless HKT Limited ("Cable & Wireless HKT") and Star Television 
Limited ("STAR TV")  today (19 January 2000) announced that the parties 
have finalised the terms of their agreement to form a joint venture 
company ("JV Company") and operate a pay television and Internet business 
as contemplated under the Memorandum of Understanding between the parties, 
details of which were announced on 10 November 1999. 

The JV Company will initially be 60 per cent owned by Cable & Wireless HKT 
and 40 per cent owned by STAR TV.  Cable & Wireless HKT will also be 
issued with warrants that will potentially enable Cable & Wireless HKT to 
increase its shareholding in the JV Company to 70 per cent, subject to 
certain conditions including payment of an exercise price calculated by 
reference to the market capitalization of the JV Company at the time the 
warrants are exercised.  In addition to the common shares and warrants to 
be issued to Cable & Wireless HKT, Cable & Wireless HKT will be issued 
with US$300 million in five-year redeemable non-voting cumulative 
preference shares with a coupon rate equivalent to the five-year United 
States Treasury Bill rate in exchange for its contribution of assets to 
the JV Company.

The JV Company will draw upon Cable & Wireless HKT's broadband technology, 
interactive television and market-leading Internet services, and STAR TV's 
premium satellite television content and expertise in media, broadcasting 
and programming. The JV Company will be operated as an independent company 
with its own management team and board of directors.

The Board would like to emphasize that formation of the JV Company and 
commencement of its business operations remain subject to the granting of 
any licences required for the JV Company to conduct the business as 
contemplated by the parties.  No assurance can be given that this 
condition will be satisfied or that the JV Company will be able to conduct 
the business as contemplated by the parties. 

The JV Company intends to deliver services to customers through television 
and computers using a combination of direct satellite delivery, digital 
subscriber line and other technologies to deploy a network providing 
consumers with optimal choice of services and features.  Subject to 
obtaining necessary regulatory approvals and licences, it is expected that 
the JV Company will commence business operations during 2000 in Hong Kong, 
with a view to expanding into other major markets in the Asia region as 
and when regulations permit.

INVESTORS ARE ADVISED TO EXERCISE CAUTION IN DEALING IN THE SHARES OF 
CABLE & WIRELESS HKT.

By Order of the Board
Donald J Hess
Company Secretary
Hong Kong, 19 January 2000