Pacific Century Premium Developments : Full Redemption of the 2014 Convertible Note and Lapse of the Subscription Agreement for the 2019 Convertible Note

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(Incorporated in Bermuda with limited liability)

The Board is pleased to announce that (i) the 2014 Convertible Note in the principal amount of
HK$2,420 million was redeemed by the CN Issuer in full in cash upon its maturity on 9 May
2014 in accordance with the terms and conditions of the 2014 Convertible Note; and (ii) the CN Issuer has chosen to redeem the 2014 Convertible Note in full in cash upon its maturity, and the CN Issuer has not issued and the CN Holder has not subscribed for the 2019 Convertible Note. In accordance with the terms of the Subscription Agreement, the Subscription Agreement has lapsed and shall be of no further effect.
Upon its redemption in full, the 2014 Convertible Note has been cancelled.
Reference is made to the circular of the Company dated 5 April 2012 (the "2012 Circular") relating to, among other things, the Subscription Agreement and the 2019 Convertible Note. Unless otherwise specified, capitalised terms used herein shall have the same meanings as those defined in the 2012 Circular.

The Board is pleased to announce that on 9 May 2014 (being the maturity date of the 2014
Convertible Note), the CN Issuer redeemed the 2014 Convertible Note in full in cash at 120% of its principal amount then outstanding (the "Redemption Amount") together with accrued interests on the outstanding principal amount of the 2014 Convertible Note up to and including 9
May 2014 in accordance with the terms and conditions of the 2014 Convertible Note. As there has been no conversion of any part of the 2014 Convertible Note, the principal amount of the
2014 Convertible Note outstanding on 9 May 2014 was HK$2,420 million and the Redemption
Amount was therefore HK$2,904 million.

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As disclosed in the 2012 Circular, pursuant to the Subscription Agreement the CN Holder has, among other things, agreed to subscribe for the 2019 Convertible Note in the principal amount of HK$2,904 million or 120% of the then outstanding principal amount under the terms of the 2014
Convertible Note which has not been repaid at or before the prescribed time on 9 May 2014, whichever is less.
As mentioned above, the Redemption Amount was fully paid by the CN Issuer in cash upon the maturity of the 2014 Convertible Note. The CN Issuer has chosen to redeem the 2014
Convertible Note in full in cash, and the CN Issuer has not issued and the CN Holder has not subscribed for the 2019 Convertible Note. In accordance with the terms of the Subscription Agreement, the Subscription Agreement has lapsed and shall be of no further effect.
Having considered the cash position and the funding requirements of the Group and the Group's future cash requirements for new investment and development opportunities and other possible sources of financing, the Board is of the view that redemption by the CN Issuer of the 2014
Convertible Note in full in cash without issuing the 2019 Convertible Note is in the best interest of the Company.
Upon its redemption in full, the 2014 Convertible Note has been cancelled.
By Order of the Board

Company Secretary

Hong Kong, 9 May 2014

As at the date of this announcement, the Directors are:

Executive Directors:

Li Tzar Kai, Richard (Chairman); Lee Chi Hong, Robert (Deputy Chairman and Chief Executive Officer); Lam Yu Yee (Deputy Chief Executive Officer and Chief Financial Officer); James Chan; and Gan Kim See, Wendy

Independent Non-Executive Directors:

Cheung Kin Piu, Valiant; Prof Wong Yue Chim, Richard, SBS, JP; and Dr Allan Zeman, GBM, GBS, JP

* For identification only

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