After a wicked dissing from KPN, which no longer considers its investment in H3G to be a 'strategic participation,' Hutchison Whampoa responds

August 21, 2002

1 Min Read

HONG KONG -- Hutchison Whampoa's response to KPN's comments on H3G UK: We are deeply disappointed in KPN's decision that it no longer considers its investment in Hutchison 3G UK to be a strategic participation. We can only conclude that the decision reflects a reversal in strategy by their new management team. We do not believe that KPN's decisions to write down its minority investment on the basis of perceived low realizable value in the current distressed telecoms market environment reflects in any way on the appropriate valuation of the business as a going concern under our Group's management and sponsorship. As distinct from other European 3G licenses in relation to which KPN and others have recently announced write-downs, Hutchison 3G UK has a concrete business plan, which is fully financed. It has also invested substantially in personnel, network equipment and infrastructure to support a full commercial launch of its business in the near term. Hutchison management wishes to re-iterate that despite volatility and negative sentiment in equity and financial markets for telecoms operators there has in our opinion been no material change in the operating or commercial environment for Hutchison 3G UK's planned 3G business which would make it reasonable to conclude to any permanent impairment of its UMTS license at this time. Hutchison Whampoa Ltd.

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