ASIA : Hutchison Whampoa Limited (HWL) today announced the Group’s annual results for 2004, and disclosed a current updated subscriber figure on its global network, which includes Italy, the UK, Australia, Austria, Sweden, and Denmark; as well as Hong Kong and Israel, which are under Hutchison Telecommunications International Limited (HTIL).

The 3 Group’s and HTIL’s 3G customer base at 30 March 2005 totalled over eight million, with over 1,700,000 new customers added in the first quarter this year following a very successful holiday season, which saw sales of over 900,000 in November and 1,300,000 in December 2004.

HWL also announced that average revenues for 3 customers, (see Key Business Indicators table) remain substantially above market averages in all markets, driven both by customer quality and stronger than expected take-up of non-voice services such as content, multi-media messaging and video services. Measured on content services, for example, the 3 Group would be one of the largest wireless value added services operators in the world.

As a result, 3 Group revenues have increased rapidly, reaching HK$15,742 million for 2004, nearly five times the revenue contribution for the seven months of operations in 2003. As average customer numbers grow and with costs tightly managed, the 3 Group is progressing rapidly to achieving its stated target of being EBITDA breakeven after expensed CAC on a month-to-month basis in the latter part of this year.

Despite new competition as incumbents launch 3G services, unit CAC is expected to continue to decline in 2005. Unit CAC in the last half of 2004 averaged Euro 271 compared to the seven-month average of Euro 299 announced with HWL’s interim results. The principal factor in the decline is rapidly dropping average handset prices, reflecting increases in both the number of suppliers offering quality product and the range of product specifications and price points offered.