City Telecom Announces Interim Results 2009

Stepped Up To Be The Second Largest Broadband Provider

WE DREAM. To be the largest IP Service Provider in HK by 2016

WE ACHIEVE. We are now the second largest broadband provider in HK

Other Financial Highlights:
* 3 Highs :
- Net profit up 57.7% YoY to HK$75.3 mn driven by improving
Fixed Telecoms Network Services (FTNS) business
- Maintain market leading broadband growth, net additions of
34,000 to 350,000, for six months to 28 Feb 2009
- Raised blended broadband ARPU by 10.7% YoY to HK$196/month
* 1 Low :
- Broadband churn remains well below 1.0% per month
HONG KONG, May 25, 2009 (GLOBE NEWSWIRE) -- City Telecom (H.K.) Limited (the
"Group") (HKEX:1137) (Nasdaq:CTEL) today announced interim results for the 6
months ended 28 February 2009. Continuing on the improving trends delivered last
year, the Group has become the second largest broadband provider in HK, and has
achieved good results with growth in subscriptions, turnover, EBITDA and net
profits.

The Group turnover increased by 15.6% year-on-year to HK$721.2 million due to
higher revenue contribution from our Fixed Telecommunications Network Service
business (FTNS) which now contributes 82.2% of the Group turnover in 1H FY09.
Our Group EBITDA for 1H FY09 increased by 24.0% to HK$232.0 million year-on-year
and our EBITDA margin increased to 32.2% when compared with 1H FY08 of 30.0%,
reflecting the growing contribution of the higher margin FTNS business. Profits
attributable to our shareholders increased by 57.7% to HK$75.3 million in 1H
FY09 with basic earnings per share at HK11.6 cents. The Board has resolved to
declare an interim dividend of HK3 cents per ordinary share in cash.

"I wish our shareholders would be delighted by the performance delivered during
this interim period. We are aiming to deliver an even slightly better result in
the second half this year, even though we are well aware of the fact that we all
are facing the global financial crisis," Chairman of the Group, Ricky Wong said.

"While the immediate economic outlook remains uncertain, we will continue to
leverage Fibre network advantage for profitable growth. We are now harvesting
shareholder value from utility-like demand on the investments in network
infrastructure and brand enhancement that we have been making since the grant of
our FTNS license in 2000," Mr. Wong said.

Additional information on City Telecom can be found at www.ctigroup.com.hk.

-0-
CONTACT: City Telecom (H.K.) Limited
Investor Relations
Peggy Chan
(852) 3145 6068
Fax: (852) 2199 8655
ir@ctihk.com