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16 February 2007

Octopus Cards Limited Statement Regarding Appointment of
Advisor by HKMA

(16 February, Hong Kong ) Octopus Cards Limited is committed to ensuring that the customers who use our service each and every day continue to do so with the full confidence and trust that have made us an integral part of daily life in Hong Kong.

The Board of Directors of Octopus Cards Limited takes this matter very seriously and has established a Special Board Committee, under the Chairmanship of Independent Director, Mr. Roger Luk, to oversee management of this matter. Mr. Luk is a former Legislative Counsellor and a former Deputy Chief Executive of Hang Seng Bank.

We will continue to work closely with the Hong Kong Monetary Authority (HKMA) and with Professor Chan Chi Fai, whom the HKMA has asked to serve as an Independent Advisor to oversee the implementation of the independent review of the EPS add-value incident and the operational and technology aspects of Octopus Cards Limited.

Octopus Cards Limited and HKMA have agreed on the scope of the review and Octopus Cards Limited is in the process of appointing a leading international management consulting firm. That appointment will be subject to HKMA approval. Once those discussions have been completed we will announce the name of that firm and the timeline for the review.

Our objective with this review is to determine the reasons for the transaction failures and to outline the technical or operational adjustments that need to be made to the system to ensure that this will not happen again. Once that review has been completed, we will work with the HKMA and with its Advisor, Professor Chan Chi Fai, to immediately implement any adjustments required.

In the interim, we are acting on the HKMA recommendation to expand the temporary suspension to all EPS add-value transactions and will be working with our commercial partners to carry this out as soon as possible.

The HKMA, in its press release issued today, also referred to a limited number of failed EPS add-value transactions occurring before December 5, 2006. The independent review will be designed to determine the full scope of this matter and all affected customers identified during that review will be notified and any refunds due them will be provided.

We are committed to keeping the public informed of progress as we carry out this review process.

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