City Telecom (HK) Ltd. ("City Telecom") (SEHK:1137) (Nasdaq:CTEL) today announced annual results for the 12 months ended 31 August 2009. The Group has put an assertive step towards Big, Hairy, Audacious Goal, to be the largest IP Provider in Hong Kong by 2016.

Highlights :

 --  Turnover grew by 13.4% year-on-year to HK$1,478.2 million due to
     strong Fixed Telecommunications Network Services (FTNS) business
 --  FTNS turnover increased by 21.8% year-on-year to HK$1,230.9
     million, with subscriptions increased by 142,000 to 943,000
     during the year
 --  EBITDA increased by 34.4% year-on-year to HK$508.1 million with
     EBITDA margin increased from 29.0% to 34.4%
 --  Positive free cash flow for the third consecutive year, profit
     attributable to shareholders up 70% to HK$212.8 million, and a
     net cash balance sheet
 --  Grew homes pass coverage by 140,000 to 1.62 million and corporate
     buildings by 530 to 1,230, expanding the base for future business
     growth
 --  Basic earnings per share increased from HK19.7 cents in FY2008 to
     HK32.4 cents in FY2009
 --  Declared a final cash dividend of HK16 cents per ordinary share
     and therefore the full year dividend for FY2009 increased by
     216.7% to HK19 cents per ordinary share (2008 : HK6 cents per
     ordinary share) as a result of an increase in dividend payout
     from around 30% to 75% of adjusted free cash flow

For full details of our annual results, please kindly click the links below :

Press Release including Chairman's Statement

http://www.ctigroup.com.hk/en/investors/2009/PR_FY09_E.pdf

HKEx Announcement

http://www.hkexnews.hk/listedco/listconews/mainindex/ipmpnews.asp?id=000889719

Results Presentation

http://www.ctigroup.com.hk/en/investors/2009/FY09_Presentation.pdf

Webcast Replay

http://www.ctigroup.com.hk/en/financial_2009.html

About City Telecom/Hong Kong Broadband Network Limited

Established in 1992, City Telecom (H.K.) Limited (SEHK:1137) (Nasdaq:CTEL) provides integrated telecommunications services in Hong Kong. City Telecom's wholly-owned subsidiary, Hong Kong Broadband Network Limited (HKBN), is in the process of expanding its Next Generation Network from approximately 1.62mn to 2.0mn homes pass. HKBN has achieved an aggregate Voice, Broadband (symmetric 25Mbps up to 1Gbps) and IP-TV services base in excess of 943,000 subscriptions. Additional information on City Telecom can be found at www.ctigroup.com.hk

This news release was distributed by GlobeNewswire, www.globenewswire.com

SOURCE: City Telecom (H.K.) Limited

CONTACT: City Telecom (H.K.) Limited Corporate Communications Jessie Cheng (852) 3145 4118 Fax: (852) 2199 8372 chengcm@ctihk.com Investor Engagement Peggy Chan (852) 3145 6068 Fax: (852) 2199 8655 investor_engagement@ctihk.com