PCCW launches eye2 Hong Kong's first Portable Media Center for your home HONG KONG, June 9, 2008 - PCCW today introduces infotainment experience for Hong Kong's households.

eye2, a revolutionary communications and

Portable Media Center -

eye2

Using a smart-looking Portable Media Center (PMC) with a built-in 8-inch touch-screen LED monitor and high-quality stereo speakers, customers may watch now TV which has more than 170 fascinating channels and enjoy over 130,000 songs and music videos from the moov digital music service wherever they are at home. Children will be encouraged to learn multiple languages through interactive contents delivered over the device, while family members may also browse news and weather bulletins, check stock prices, and even obtain multilingual cooking recipes*. All in all, through eye2's touch-screen LED monitor, more than 100 types of exciting infotainment contents and interactive services are accessible literally at the users' fingertips to meet their individual needs. In addition, users can maintain close contact with their loved ones on eye2 through video calls^, or traditional voice calls in conjunction with the use of an indoor cordless DECT phone. PCCW's Managing Director of Consumer Group, Mr. Tom Chan, said: "eye2 represents a breakthrough in technology integration and application. It enables telephone communication, TV, multimedia player, infotainment content and interactive services. On the back of PCCW's unique quadruple-play platform, eye2 demonstrates our commitment to enhancing communications and infotainment services for Hong Kong's households and to the development of information technology in Hong Kong." Mr. Chan added: "Leveraging the global trend of IP convergence devices, PCCW launched its firstgeneration eye Multimedia Service in 2007, ushering in a new era of home communications and infotainment in Hong Kong. Since its introduction, customer response has been encouraging and multimedia content usage has grown continuously. After taking into account customer feedback and the latest in technology development, we have developed the world's most advanced and exciting home multimedia product. Many top-notch telecoms operators around the world are developing similar home multimedia projects, which we believe will become a new global trend. We are confident that eye2 will strengthen our position as a leading player in Information and Communication Technologies in the world." Multimedia infotainment and application services available on

eye2 include:

A vast majority of the 170-plus now TV channels, made available through embedded now TV decoder; 130,000-plus music titles on moov, covering plugged songs, latest albums, concerts, moov Live and music videos. Elderly people may play back Cantonese opera masterpieces without the need to operate a complicated hi-fi system; Living Encyclopedia - instantly check up-to-date information, including news and weather bulletins, stock quotes, as well as horse-racing, football and Mark Six updates; Whiz Kids - fun-filled interactive learning features for children to improve their language skills include Disney Story Telling, Disney Greetings, Disney Song, English and Cartoon Song, IQ forum and Longman Interactive Learning*; Cooking Recipes - audio recipes are available in Cantonese, English, Tagalog and Bahasa Indonesian*. TV artiste Gigi Wong's popular recipes are also available; PCCW Services - these include EasyWatch service, useful telephone numbers, billing inquiry, snaap! digital photo sharing service, and PPS service*. Users can buy movie tickets and select cinema seats*, and access the PCCW Yellow Pages directories *; Multimedia Player - view digital photos, play movies and enjoy music by simply inserting a memory device into the USB port; and Multimedia Settings - eye2's built-in multi-functional settings include language selection, brightness control, theme design, menu and title display, backlight and volume control, and ringtone selection, enabling customers to easily personalize their devices. Through eye2, customers may make video calls^ or traditional voice calls through indoor cordless DECT phones. To facilitate customers' thorough enjoyment of this new experience, PCCW also offers a series of accessories including DECT phones, touch-screen protector, stylus and earphones, etc. For $188 a month, eye2 customers can enjoy designated now TV free to air channels, the opportunity to subscribe to any now TV pay channels, as well as a free trial for the moov digital music service, and unlimited local video and voice calls. For more information, please visit www.pccweye.com, call our customer service hotline at 2888 0008 (and press 6), or visit any PCCW shop.^ Video calls can only be connected to PCCW eye Multimedia Service and PCCW mobile's 3G network at this stage. Video calls to customers of other telecom operators will be available upon reaching an inter-connection agreement with the respective operators. * Available soon

eye2 Presentation [pdf - 2.11MB]About PCCW Limited PCCW Limited (SEHK:0008) is the holding company of HKT Group Holdings Limited (HKT), Hong Kong's premier telecommunications provider and a world-class player in Information and Communications Technologies. PCCW also holds a majority interest in Pacific Century Premium Developments Limited, and overseas investments including the wholly-owned UK Broadband Limited. As the provider of Hong Kong's first quadruple-play experience, PCCW/HKT offers a range of innovative media content and services across four platforms - fixed-line, broadband Internet access, TV and mobile. In addition, the Group meets the sophisticated needs of the local and international business community, while supporting network operators with cutting-edge technical services and handling large-scale IT outsourcing projects for public and private sector organizations. To learn more about PCCW and HKT, please visit www.pccw.com. For more information, please contact: Stella Wong Corporate Communications Tel: (852) 2888 2253 Email: stella.wm.wong@pccw.com

Photo 1: PCCW's Managing Director of Consumer Group Mr. Tom Chan (centre) is pleased to introduce first Portable Media Center for your home.

eye2, Hong Kong's

Photo 2: PCCW's Managing Director of Consumer Group Mr. Tom Chan (centre), PCCW Consumer Marketing Director of Fixed Line and IDD Services Marketing Ms. Clara Kan (2nd from left) and Director of Product Development and Management Dr Allen Wong (2nd from right) are pleased to introduce

eye2.

Photo 3 - 7: Portable Media Center -

eye2

eye2

Quad-play StrategyBroadband1.5-6Mbps ADSL2+ WiFi HS 6Mbps 8Mbps 18Mbps 4,000

2007 - PresentHome WiFi Broadband WiFi/HSPA VDSL everywhere 30Mbps Roaming

FTTH 1000M DTT

TelevisionBasic Pay TV Basic Interactivity HDTV

HD andAdvanced Interactivity InteractiveMobile Music, TV HSPA+

Mobile2G 3G

VoiceCircuit SW SMS NGFL PSTN On-demand Color Audio

Lifestyle

Packet Switched IP Voice

NGN

eye2 - Digital Lifestyle Living

eye Innovative Multimedia Service Launch in 2007 now TV moov Yellow Pages Fixed & Mobile Video Call Secured Transactions on Betting (Football, Horse Racing and Mark Six) View Octopus transaction records PPS Payments Ticket ordering Interactive Kids Learning tool Useful Infotainment

Simple screen-based menu for content and applications Received very positive customer feedback

eye Learning - Customer Feedback1. Nearly 90% customers satisfied with eye Multimedia Service and willing to recommend to their friends 2. Four Pillars of most frequently used content and applications, high level of content usage sustained since launchKids Interactive Learning (65% Active)

now TV (50% Active)moov Music Player (60% Active)Video Call (30% Active)

3. Customer numbers picking up steadily indicated: - Receptiveness to the new product - Willingness to pay more for Value Add services on Fixed Line

Improvement in Hardware and Technology

eye MultimediaService

eye2

Phone-like corded terminal 4.3 QVGA TFT Screen MPEG4 video streaming Softkeys + Hotkeys + Navigation keys

Portable Multi-media personal entertainment 8 WVGA 16:9 TFT with LED backlights H.264 DVD quality video streaming Touch screen + Softkeys + Navigation keys

Improvement in Content and Applications

eye MultimediaService

eye2

11 designated now TV channels Audio Moov music player Interactive Kids learning USB Video Viewing Not available

Watch now TV with over 170# channels thru embedded decoder Audio and Video moov music player New: MV, Concert, Album, moov Live, My Collection, Lyrics and Shuffle capability Capable to incorporate Dictionary, Vocabulary Flash cards & Phonics# Can view up to 7 different video format

# some channels and services available later in the year

eye2 Host of Benefits

eye2 offers Video call function on top of basic home phone service Personal portable 2nd TV set at Home Home moov music player, more private with headset on Handy interactive learning centre for kids Trendy digital photo frame Centre of useful information and applications

Emerging Global Trend Telco operators worldwide are in search of IP Convergence devices for their Next Generation Network (NGN) AT&T - Home Manager (Sep 08) Next Generation home communication Some Internet content No video or music support No mobility at home Verizon Hub (Jan 09) Communication centric Internet video clips No TV broadcast or music service No mobility at home

US$349.99

US$249.99

Emerging Global Trend Korean Telecom - Wave Home (Feb 09) Fixed line centric Internet video clips No mobility at Home

Broadband multimedia device to enrich home entertainment experience A new form of home phone with upgraded capabilities Good potential new revenue source PCCW is leading this trend

eye2

eye2

now170*

moov130,000

*noweye2

eye2 /

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now170

now TV2eye2

noweye2

moov130,000 MVmoov Live

IQ

IQ ()

IQ ()

1,000

moov

eye2

eye

3G mobile

eye2 802.11 b/g WiFi 8TFT

TI DaVinci 644X 512MB Flash 256MB SDRAM

8

eye2 36LED

3W

3,900mAh (Li-ion Polymer)

eye2 USBavi, wmv, mpg mov, mp4, ts

mp3, aac, wma

jpeg

eye2 SpecificationsMicroprocessor Memory Screen TI DaVinci 664X Dual Core 512MB Flash and 256MB SDRAM 8 TFT Touch Screen, Resistive WVGA 800x480 resolution 36 White LED Backlights Speakers Video Camera Microphone Wireless Connectivity USB Ports (Host) Battery 3W High-quality Stereo Speakers, 100Hz~20kHz Support stimulated surround 320k pixel CMOS Anti-flickering and Auto White Balance Condenser type, Omni-directional IEEE 802.11b/g, WPA2-PSK(AES) and WEP 1x USB 2.0 Type A Lithium-ion Polymer Rechargeable 3.7V 3,900mAh Lead-free, Cadmium-free Power Supply/Charger Audio-In / Audio-Out Media format support In : AC 230V 210mA Out: DC 15V 1.2A max 3.5 mm audio socket AVI, WMV, MPG, MOV, MP4, TS H.264, WMV9, DivX (4&5), XviD, MPEG2, MPEG4 MP3, AAC, WMA, JPEG Dimension Weight 140mm (H) x 240mm (L) x 32mm (D) 800g

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