City Telecom 1H FY2010 Results -- Record Broadband Subscription Growth

City Telecom (H.K.) Limited ("City Telecom") (HKSE:1137) (Nasdaq:CTEL) today announced interim results for the six months ended 28 February 2010. The Group's financial performance in 1H FY2010 was well ahead of 1H FY2009, substantially driven by our strong operational growth in the Fixed Telecommunications Network Service (FTNS) business, as well as lower financial costs. The Board has resolved to declare an interim dividend of HK6.5 cents per ordinary share versus HK3.0 cents for same period last year.

Financial Highlights:

• Solid subscription growth of 84,000 during six months to 1,027,000 as of 28 February 2010
• The fastest growing residential broadband provider in Hong Kong with net additions in broadband of 73,000 to 464,000 as at 28 February 2010, compared with 75,000 additions for the entire twelve months to 31 August 2009
• Turnover grew by 9.0% year-on-year to HK$786.0 million driven by higher revenue contribution from our Fixed Telecommunications Network Service (FTNS) business of 14.0% year-on-year to HK$675.8 million
• Core EBITDA (note) increased by 11.4% year-on-year to HK$258.5 million
• Net profit up 54.6% year-on-year to HK$116.4 million with basic earnings per share amounted to HK17.3 cents versus HK11.6 cents for same period last year
• Strong balance sheet with net debt to annualized EBITDA of 0.1x
• Declared an interim dividend of HK6.5 cents per ordinary share versus HK3.0 cents per ordinary share for same period last year

Note: Core EBITDA represents the EBITDA for any period plus or deduct any net (loss) or gain from extinguishment of 10-year senior notes.

For full details of our interim results, please click the link below: http://ir.ctigroup.com.hk/eng/ir/results.php

About City Telecom/Hong Kong Broadband Network Limited

Established in 1992, City Telecom (H.K.) Limited (HKSE:1137) (Nasdaq:CTEL) provides integrated telecommunications services in Hong Kong via its own self-built fibre network. City Telecom's wholly-owned subsidiary, Hong Kong Broadband Network Limited (HKBN), is the fastest growing broadband service provider in Hong Kong. HKBN offers a diversified portfolio of innovative products that service over 1,027,000 subscriptions for broadband, local telephony and IP-TV services. The Company has built a solid market position with top-of-the-line applications and practices enabling it substantial growth. The company takes great pride in developing its 3,000 Talent force into a competitive advantage. Additional information on City Telecom can be found at www.ctigroup.com.hk.

CONTACT:  City Telecom (H.K.) Limited
          Corporate Communications
          Jessie Cheng
            (852) 3145 4118
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            [e-mail]
          Investor Engagement
          Peggy Chan
            (852) 3145 6068
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            [e-mail]