The cash dividend is HK$7 per Share (or approximately US$13.55 per ADS).

Shareholders of record on 28 November 2008 ("Qualifying Shareholders") and ADS holders of record on 25 November 2008 ("Qualifying ADS holders") are entitled to receive the special dividend. Please refer to the Company's Announcement dated 12 November 2008 for cut off time for depositing valid securities transfer for becoming Qualifying Shareholders and Qualifying ADS holders. By operation of the Due Bills activated by the New York Stock Exchange, our ADSs will continue to trade with Due Bills until 3 December 2008. An ADS holder must hold the ADSs up to the ex-dividend date of 3 December 2008 to receive the dividend through operation of the Due Bills. You are advised to consult with your US broker or other US advisors on the consequence of ADSs trading with Due Bills.

On 2 December 2008, dividend warrants will be posted by our Hong Kong share registrar to Shareholders and dividend cheques will be posted by our ADS depositary to ADS holders.

Qualifying ADS holders will receive the special dividend in US$.

Qualifying Shareholders will receive the special dividend in HK$ unless written notifications are given to the Company that they wish to receive the dividend in US$ by 4:30 pm on 27 November 2008 (HK time) - please refer to the Company's Announcement dated 12 November 2008 for further details.

The Company will announce the rate on 28 November 2008.

Our ADS will be traded ex-dividend on 3 December 2008 and our Shares will be traded ex-dividend on 25 November 2008.

You will be entitled to the special dividend by virtue of being an ADS holder of record on 25 November 2008, but by operation of the Due Bills activated by the New York Stock Exchange, on selling the ADSs after 25 November 2008 your dividend entitlement is sold on with the ADSs through the Due Bills (i.e., your dividend entitlement will be embedded in the ADS trading price). You are advised to consult with your US broker or other US advisors on the consequence of ADSs trading with Due Bills.

If you buy ADSs trading with Due Bills after 25 November 2008 and hold them up to the ex-dividend date of 3 December 2008, your entitlement to the dividend arises on redemption of the Due Bills. You are advised to consult with your US broker or other US advisors on the consequence of ADSs trading with Due Bills.

No. Since by operation of the Due Bills activated by the New York Stock Exchange, any trading of the ADSs between 25 November 2008 to 3 December 2008 is with Due Bills which carry with them the entitlement to receive the dividend through redemption of the Due Bills and the ADS trading price during such period will have the special dividend embedded in it. You are advised to consult with your US broker or other US advisors on the consequence of ADSs trading with Due Bills.

Based on our audited accounts and relevant market and shareholder data, we believe that we were not a PFIC for US federal income tax purposes with respect to the 2007 tax year.

Subject to the following discussion, we anticipate that the special dividend in 2008 will be a "qualified dividend" eligible for the capital gains tax rate in the United States. However, if we are classified as a passive foreign investment company ("PFIC"), the dividend will not be a "qualified dividend".

A non-US corporation will be considered a PFIC for any taxable year in which (1) 75% or more of its gross income is passive income, or (2) 50% or more of the average value (or, if elected, the adjusted tax basis) of its assets are considered "passive assets" (generally, assets that generate passive income).

Based on HTIL's audited accounts and relevant market and shareholder data, HTIL believes that it was not a PFIC for US federal income tax purposes under the foregoing tests with respect to its 2008 taxable year. However, HTIL had large amounts of cash and other passive assets in 2008 as the result of its disposition of CGP Investments Holdings to Vodafone in 2007, and therefore, it is possible that HTIL would need to rely on the special relief provided by the US Internal Revenue Code of 1986 (the "Code") for companies that temporarily hold substantial passive assets as a result of the disposition of an active trade or business (the "change of business" exception under Section 1298(b)(3) of the Code).

HTIL has received a private letter ruling from the US Internal Revenue Service confirming that the disposition of CGP Investments Holdings to Vodafone qualifies as the disposition of one or more active trades or businesses" within the meaning of the change of business exception. Notwithstanding such ruling, in order to qualify for the change of business exception in 2008, HTIL must satisfy the following conditions: (1) HTIL must have never previously been a PFIC, (2) "substantially all" of its passive income for 2008 must be attributable to proceeds from the disposition of one or more "active trades or businesses" (as these terms are used and interpreted under the Code), and (3) HTIL must not be a PFIC for either of 2009 and 2010. HTIL believes that the above conditions (1) and (2) are satisfied. In case of the third one, HTIL will need to ensure that less than 50% of the average value of our total assets in 2009 and 2010 is passive. HTIL can provide no assurance that it will not be a PFIC for 2009 or 2010. If HTIL is found to be a PFIC for 2009 or 2010, then HTIL would retroactively be ineligible for the change of business exception. HTIL will not know and will not be able to inform its holders of such determination until 2010 or 2011.

The PFIC rules are complex, and we suggest that investors take their own advice regarding the possible application of the PFIC rules to the Company and any questions that they may have on any US tax arising therefrom.

In order to avoid PFIC status in 2009 (or 2010), we would need to ensure that less than 50% of the average value of our total assets in 2009 and 2010 is passive. Payment of the 2008 Special Dividend has substantially reduced our holdings of assets generating passive income and would improve our position in our determination of PFIC status for the 2009 tax year. However, we can provide no assurances that such reduction in passive assets necessarily will result in less than 50% of the average value of our total assets being passive in 2009 and 2010. We suggest that investors take their own advice regarding the potential application of PFIC rules to the Company and any questions they may have on any US tax arising therefrom.