The TOM Group

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

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

3. Part I About The Transaction

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

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

8. Stable Tour Club Membership (TCM) Revenue 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% Contract Term (2002) 1 year 39% 2-3 years 61%

9. Additional Revenue from Ticketing & TV Syndication Ticketing Stable Attendance with Growth in Recent Years Attendance The Festival Area opened to the public from 1997 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

10. A Profitable Business 80% confirmed with contracts signed as at Aug 15 * * Profit Guarantee 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%

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 $5.51 per share Warranty • Consideration shares are pledged until the end of 2006 against any possible shortfall of profits and in the unlikely event that the ATP rights are cancelled Profit Guarantee Profit After Tax Guarantee • Failing achievement of 2002 guarantee, valuation will be adjusted accordingly • Any shortfall of cumulative 2003 – 2005 guarantee will be compensated by dividends of the vendor HK$’M Minimum 10% CAGR guaranteed

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

13. Part II TOM’s Sports & Entertainment Division

14. Divisional Management Tennis Management Group Corporate – Sports & Entertainment Team COO Michelle Leung • 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 … Finance Director Quincy Tang GM - BD Michael Ng GM – Corp Dev Anthony Tse PRC Operation Center • Anna Pang • General Manager • 10 years of experience in organising and marketing 200+ sports events; and in sports TV production and programme syndication Senior Advisor Tan Zhi Tennis Mgt Group Lincoln Venancio / Anna Pang YC Companies Ben Li / Sarah Fung Hong Xiang Zhang Bao Cheng

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

16. Higher Margins for the Sports Division Net Profit Margin Analysis 2001A 2002E 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. Synergies With TOM Sports & Entertainment Division China Sports Industry JV Tennis Management Group Hong Xiang Audio Video YC Companies • Sports consultancy • Athlete representation Production & distribution of sports programming • Launch an alternate ATP Open in Beijing • Cross-leverage client base • Expand sports TV programme syndication business – new programmes and new distribution channels