1. The TOM Group Expanding Our Sporting Rights Portfolio 15 th August 2002

2. 2 Addition of ATP Tennis Rights to TOM’s Sports Portfolio Telecom VAS Internet Access Wireless VAS Media & Entertainment Music & Entertainment OutdoorOnlinePublishing Virtual Network Operator YC Companies SPORTS basketball, volleyball university soccer women’s soccer table tennis, golf gymnastics, bowling Philips Sports Report Nokia Sports Daily News Special programming JV with China Sports Industry Tennis Management Group Rights to ATP Tennis TV programmes (including Salem Open) Commercial rights Programming

3. 3 Part I About The Transaction

4. 4 About Tennis Management Group  Tennis Management Group is a leading sports marketer in the industry Tennis Management Group 2002E Revenue: HK$46 million Programme syndication Sports event consulting Promotion & Advertising 25% Event sponsorship 75% 46% of i-cable’s HK$100M in World Cup revenues Recurrent annual revenue

5. 5 Perpetual Ownership Of Asia’s Leading Sports Event  The Association of Tennis Professionals (ATP) has granted Tennis Management Group rights to the Hong Kong ATP Open since 1990  The rights are renewed automatically every year upon payment of an annual fee (US$25,000 p.a.) and compliance with regulations  Only one ATP right granted in Hong Kong  In discussions with ATP to alternate the tournament between Hong Kong and Beijing

6. 6 About the Salem Open  One out of only 3 ATP authorised tennis tournaments in Asia that entitle players to international ranking credits (others in Shanghai and Tokyo)  One of the most profitable international tennis tournaments in Asia  Organised by Tennis Management Group once a year since 1990  Attracts 50-70 international players including 5-8 star players every year: Michael Chang, Andre Agassi, Pete Sampras, Mark Philippoussis …

7. 7 Contract Term (2002) Strong Sponsorship Revenue from Long-Term Sponsors 1 year 78% 2-3 years 22% Loyal sponsor base:  Average years of participation of top 5 sponsors: 6 years Years of Participation (2002) 1-4 years 32% 13 years 55% 5-8 years 13%

8. 8 Contract Term (2002) Stable Tour Club Membership (TCM) Revenue 1 year 39% 2-3 years 61% Loyal TCM customer base:  Average years of participation of top 5 TCM customers: 6 years Years of Participation (2002) 1-4 years 36% 5+ years 64%

9. 9 Additional Revenue from Ticketing & TV Syndication Ticketing TV Programme Syndication  Salem Open and other sports TV programmes are distributed to over 25 TV stations in China (including TVB, CCTV, Guangdong TV) and worldwide (e.g. Eurosport)  Revenue from the sale of broadcasting rights / resale of commercial airtime Stable Attendance with Growth in Recent Years The Festival Area opened to the public from 1997 Attendance

10. 10 A Profitable Business 80% confirmed with contracts signed as at Aug 15 Significant margin increase in 2002 over 2001  Increase in sponsor and TCM customer base  Joint promotions and barter deals with the media reduced A&P expenses by 40%  Reduced player appearance fees – without compromising the number of star players  Re-negotiations with contractors cut event expenses by 34% * Profit Guarantee *

11. 11 Highlights of the Transaction Investment  TOM to acquire a 60% equity interest in Tennis Management Group for HK$101M  All-equity transaction: 18.29M TOM shares issued at $5.51 per share Warranty  Consideration shares are pledged until the end of 2006 against any possible shortfall of profits and in the unlikely event that the ATP rights are cancelled Profit Guarantee HK$’M Profit After Tax Guarantee Minimum 10% CAGR guaranteed  Failing achievement of 2002 guarantee, valuation will be adjusted accordingly  Any shortfall of cumulative 2003 – 2005 guarantee will be compensated by dividends of the vendor

12. 12 Valuation Analysis Tennis Management Group is the most efficient company … … with the most attractive valuation * * Based on 2002 profit guarantee

13. 13 Part II TOM’s Sports & Entertainment Division

14. 14 Divisional Management COO Michelle Leung GM - BD Michael Ng GM – Corp Dev Anthony Tse Hong Xiang Zhang Bao Cheng YC Companies Ben Li / Sarah Fung Corporate – Sports & Entertainment Team PRC Operation Center Finance Director Quincy Tang Senior Advisor Tan Zhi Tennis Management Group Tennis Mgt Group Lincoln Venancio / Anna Pang Lincoln Venancio Founder & Managing Director Former Olympic team tennis coach 16 years of experience in organising 500+ sports events, including tennis, golf, basketball, table tennis, volleyball, etc., in Greater China, Japan, Korea, Southeast Asia, the US, Brazil, Spain … Anna Pang General Manager 10 years of experience in organising and marketing 200+ sports events; and in sports TV production and programme syndication

15. 15 Growth Of YC Companies Under TOM’s Management HK$’M YC Companies Revenue Trend Q1 is historically the weakest quarter due to advertising seasonality Rights Portfolio Volleyball University Soccer Table Tennis Bowling GymnasticsBasketball Tennis Golf Women’s Soccer TOM acquires YC KCRC Chinese Gymnastic Gold Medallists Show World Cup Philips Inter- University Football Game Major Cross Media Events Grew advertiser base by 10% since acquisition Developed new co- sponsorship packages to monetise existing rights

16. 16 Higher Margins for the Sports Division Net Profit Margin Analysis 2001A2002E International sports marketing companies include World Wrestling Entertainment, International Speedway, Sportsworld Media Group, CSS Stellar, Sports Resource Group, Sport Entertainment Media and Proactive Sports Group

17. 17 Synergies With TOM Sports & Entertainment Division YC Companies China Sports Industry JV Tennis Management Group Hong Xiang Audio Video Production & distribution of sports programming Sports consultancy Athlete representation Launch an alternate ATP Open in Beijing Cross-leverage client base Expand sports TV programme syndication business – new programmes and new distribution channels