Melco Announces 2007 Annual Results

Highlights

HONG KONG, March 31 /Xinhua-PRNewswire-FirstCall/ -- Melco International
Development Limited ("Melco" or the "Group", HKEx Code: 200) today announced
its annual results for the year ended December 31, 2007.
For the year under review, revenue increased by 27% to HK$1.016 billion,
and net profit attributable to shareholders was HK$2.691 billion. Basic
earnings per share was HK$2.19, and net asset value attributable to
shareholders per share increased by 36% to HK$8.40. The Board of Directors
proposed a final dividend payment of 1 HK cent per ordinary share for the year
ended December 31, 2007. Please refer to the Results Announcement on the Stock
Exchange website for detailed Financial Review.
Mr. Lawrence Ho, Chairman and CEO of Melco, said, "I am delighted to see
Melco's breakthrough achievements in various business sectors. Apart from
achieving improved performance in our leisure, gaming and entertainment
division, we also saw significant progress in our financial services and
technology divisions. With four listed companies specializing in their
respective areas, the Melco Group is now a New Generation Asian Conglomerate.
Our mission is to maximize shareholder value and at the same time, abide by
the highest standard of corporate governance."
Business Highlights
2007 saw significant achievements in our core business of leisure, gaming
and entertainment.
Melco PBL Entertainment (Macau) Limited (Nasdaq: MPEL)
The Group's gaming operation is principally conducted through 37.9% NASDAQ
listed associate Melco PBL Entertainment (Macau) Limited.
Crown Macau, the Group's first hotel-cum-casino project targeting high
rollers, opened on 12 May, 2007. By repositioning the property to focusing on
the buoyant VIP market, market share of Crown Macau jumped from under 2% in
May 2007 to around 18% in February 2008. In December 2007, AMA International
Limited ("AMA"), a junket aggregator, was appointed as a gaming promoter for
Crown Macau. For the month of February, the rolling chip volume of Crown Macau
exceeded HK$50 billion, making it the largest VIP gaming venue in Macau.
In early 2008, Crown Macau won the "Best Casino Interior Design Award" in
the first "International Gaming Awards 2008" held in London, UK. The award
recognizes outstanding design in the casino sector. The winner was judged on
originality, innovative style, quality of materials and customer friendly
environment. Among all the hotels and casinos currently operating in Macau,
"Crown Macau" is the first property to receive the "Best Interior Design"
honor.
Development of the City of Dreams remains on track. All superstructure
work on the main podium is now complete. Upon full completion, City of Dreams
will offer guests with four hotel options, i.e. Crown Towers Cotai, Hard Rock
Macau, the twin-tower Grand Hyatt Macau, and an apartment hotel, together of
which will provide over 2,200 rooms and suites. Each hotel will also offer its
own individual spa and leisure facilities. During the year, MPEL successfully
negotiated a one-year extension to its conditional agreement to purchase the
Macau peninsula site and remains committed to developing the Macau Peninsula
project.
In the fourth quarter of 2007, the number of gaming machines in operation
at the Mocha Clubs averaged approximately 1,088 in seven locations. The
seventh Mocha Club opened in October 2007 at Mocha Square, adding
approximately 130 gaming machines. The site was temporarily closed on December
31, 2007 for remedial renovation works and is currently scheduled to resume
operations in May 2008. An expansion of the Hotel Royal Mocha outlet was
completed and opened on February 5, 2008. The current installed base of Mocha
Club gaming machines remains approximately 1,100.
Melco LottVentures Limited (HKEx: 8198)
The Group's Asian lottery business is conducted via Melco LottVentures
Limited ("Melco LottVentures", formerly Wafer Systems Limited). Currently,
Melco LottVentures manages approximately over 500 venues in China for the
Sports Lottery and owns one of the largest lottery sales networks in the PRC,
providing a comprehensive range of lottery-related services including venue
management services, lottery terminal distribution, wholesale distribution of
scratch cards etc. Melco LottVentures also manufactures lottery vending
terminals for both China Sports Lottery Administration Centre and China
Welfare Lottery Issuance Centre. In March 2008, Melco LottVentures made its
first move outside of China to tap the South Korean lottery market through
entering into an agreement to acquire the entire issued share capital of KTeMs
Co., Ltd, which has an exclusive license to operate national lotto games in
Korea.
Melco China Resort Investment Limited
To capitalize on the transition of China into a consumption-led economy,
the Group expanded its leisure and entertainment business through the
establishment of Melco China Resort Investment Limited ("MCR"), a 45%-owned
associate of the Group, in March 2007. Working with the world's top industry
experts, MCR has identified the largest and most exceptional portfolio of
irreplaceable, existing ski resorts with the best mountains, location
advantages, dominant market positions and healthy expansion potential. Initial
projects include a resort in Harbin of Heilongjiang Province, three in Jilin
Province and another one close to Beijing.
Elixir Gaming Technologies, Inc. (Amex Ticker: EGT)
Through an earn-in arrangement, Melco has become the largest shareholder
of US-listed Elixir Gaming Technologies, Inc., a company owned as to
approximately 39.9% by the Group. EGT is engaged in the lucrative business of
slot machine leasing on a revenue sharing model across various countries in
Asia including the Philippines, Cambodia and Vietnam.
Value Convergence Holdings Limited (HKEx: 8101)
The Group's Financial Services division, Value Convergence Holdings
Limited ("Value Convergence") delivered encouraging results in its broking and
margin financing business. Braced by the buoyant stock market, brokerage
commission from dealings in securities improved significantly for the year
under review. In addition to general financial advisory transactions, in late
September 2007, Value Convergence together with UBS AG acted as joint sponsors
for the initial public offering of Hidili Industry International Limited. The
IPO was about 670 times subscribed and raised over HK$4 billion.
Awards & Recognitions
During the year, the Group continued to earn international recognition for
its outstanding performance and distinctive leadership. It received the
Corporate Governance Asia Annual Recognition Award from Corporate Governance
Asia and a number of major honors on the 'Asia's Best Managed Companies 2007'
list published by the renowned FinanceAsia magazine. Those titles included
'Best Managed Companies', 'Best Corporate Governance', and 'Best Investor
Relations', reflecting the Group's standing in the eye of the investment
community. Melco will continue to ensure the Group and all its subsidiaries
uphold a high level of corporate governance, which it sees as essential to
bringing the highest possible returns to shareholders.
"Overall, I am pleased with our achievements in 2007. Melco is well-
positioned as one of the dynamic conglomerates in Asia in the new era
characterized by consumers eager for new experiences and living life to the
fullest. We will continue to capture any opportunities available to us in
Macau. The Mainland China market offers enormous potential and vast consumer
demand which will no doubt fuel the growth of our lottery operations and ski
resort developments. We expect our Group to continue to deliver strong
performance and shareholder value in the forthcoming year," Mr. Ho concluded.
To view the results announcement of Melco's 2007 annual results, please
visit the following link:
http://www.hkexnews.hk/listedco/listconews/sehk/20080331/LTN20080331146.pdf
To view the archive video webcast of Melco's 2007 annual results' media
conference dated 31 March, 2008, please visit the following link (effective
before 30 September 2008):
http://events4.broadcastone.net/0200/20080331/default.asp
About Melco International Development Limited
Melco International Development Limited ("Melco") is one of the companies
with the longest history in Hong Kong. Founded in 1910, Melco was among the
first one hundred companies established in the city and was listed on the Hong
Kong Stock Exchange in 1927. Today, under the leadership of its Chairman & CEO
Lawrence Ho, Melco is now a dynamic New Generation Asian Conglomerate that
leads in leisure and entertainment industry in Asia. Its promising performance
and distinctive leadership in the industry are also well recognized worldwide.
Melco is a constituent of the MSCI Hong Kong Index, part of the MSCI Standard
Index Series and granted the Asia's Best Managed Companies 2007 Award issued
by FinanceAsia. For more information, please visit http://www.melco-group.com
.
Media Enquiries:

Melco International Development Limited
Maggie Ma
Tel: +852-3151-3767
Email: maggiema@melco-group.com
Fax: +852-3162-3579

Strategic Financial Relations Limited
Mandy Go
Tel: +852-2864-4812
Email: mandy.go@sprg.com.hk

Cindy Lung
Tel: +852-2864-4867
Email: cindy.lung@sprg.com.hk

Angela Ng
Tel: +852-2864-4855
Email: angela.ng@sprg.com.hk

Brenda Liu
Tel: +852-2864-4851
Email: brenda.liu@sprg.com.hk
Fax: +852-2804-2789

SOURCE Melco International Development Limited

Maggie Ma of Melco at +852-3151-3767, fax +852-3162-3579 or
maggiema@melco-group.com; or Mandy Go at +852-2864-4812 or
mandy.go@sprg.com.hk; or Cindy Lung at +852-2864-4867 or
cindy.lung@sprg.com.hk; or Angela Ng at +852-2864-4855 or
angela.ng@sprg.com.hk; Brenda Liu at +852-2864-4851 or brenda.liu@sprg.com.hk;
or fax +852-2804-2789; all of Strategic Financial Relations Limited for Melco