(Hong Kong, March 9, 2006) -- Lawrence Ho's Melco International Development Limited ("Melco" or the "Group", HKSE Code: 200) and its exclusive pan-Asian joint venture partner, James Packer's Publishing and Broadcasting Ltd ("PBL"), announced today that they would acquire the last available subconcession note1 to own and operate hotel casino resorts in the Macau Special Administrative Region, subject to the approval of the Macau Government.

Simultaneous with PBL's acquisition of a subconcession from Wynn Resorts Limited ("Wynn"), Melco will acquire a 40% interest of the PBL subsidiary which owns the subconcession.

The purchase price payable to Wynn for the acquisition of the subconcession of US$900 million is anticipated to be funded as to US$400 million by way of equity (PBL to share US$240 million; Melco to share US$160 million) and as to US$500 million by way of a non-recourse bank loan. Melco intends to fund the US$160 million by internal resources. Initially, Melco will pay only US$ 40 million, 40% of its total capital contribution of the US$160 million, as deposit. The remaining 60% will be settled upon the granting of subconcession.

Mr Lawrence Ho, Group Managing Director and the largest shareholder of Melco note2 , said, "I am very delighted that our JV partner PBL has secured the last subconcession in Macau and has given us the opportunity to be a part of it. Having total ownership & control on our gaming projects in such a competitive gaming market is invaluable; this will give us much greater flexibility in planning for and operating future projects. It enables Melco PBL to fully capitalize on the arising opportunities in Macau 's gaming market and deliver more significant returns to our shareholders."

Furthermore, Mr Lawrence Ho and Mr James Packer, Executive Chairman of PBL, have agreed that, with the acquisition of the subconcession, Melco and PBL will share the economic value / benefit of all projects in Macau and Asia on a 50:50 basis.

The subconcession will allow Melco PBL to operate the two proposed Macau casino projects, Crown Macau and City of Dreams which are scheduled to be completed in the first quarter of 2007 and mid 2008 respectively.

Mr Ho concluded, "Thanks to the Government's unwavering efforts to liberalize the gaming market and developing Macau into an energetic city with great entertainment and its various infrastructure projects forging ahead at full steam, Macau's economy is prospering. Looking ahead, Melco's great knowledge of the Macau & China markets and PBL's experience in casino & entertainment businesses, together with the newly acquired casino subconcession, will put Melco PBL in a strong position to thrive in the competitive but fast growing gaming market of Macau ."

Note:

1. The Subconcession will be effective until June 2022, and will not limit the number of casinos or the number of tables and machines in those casinos to be operated by its holder.
2. As of 9 March 2006, Mr. Lawrence Ho is the largest shareholder of Melco with a 35.3% interest, while Janus Capital is the second largest shareholder with a share holding of 8.9%.