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Press Release - Joint Venture provides e-businesses with "on-demand" powerful technology and pay-as-you-go efficiency , 09 Jan 2001

Hong Kong January 9, 2001 -- Asian e-businesses can now benefit from a unique, global-first in user-friendly, cost-effective data center services, thanks to PowerbaseEngines (PbE) Limited ("PbE"), a joint venture between Powerb@se of PCCW (SEHK: 0008, NYSE: PCW [ADR]), Sybond, the investment arm of Shell Electric Manufacturing (Holdings) Company Limited ("SMC"), and ASPEngines, Inc. ("ASPE").

PbE is the first company in the world to apply ASPEngines' technology in providing compute resources as a service. PbE's clients will be able to access a host of ultra-powerful advanced compute resources on demand 24x7, yet enjoy the flexibility to pay for only what is used due to a breakthrough service dubbed `Neutility.'

"PbE is the result of three outstanding companies working closely together to create affordable service-oriented, technologically superior data-center services," said William Cheung, Group Chief Operation Officer of PCCW.

"Powerb@seEngines enables businesses to concentrate on their core competencies and remain specialists in their fields, with the support from PbE's vast specialist IT knowledge."

The PbE service adopts ASPEngines' Neutility business model - on-demand compute resources including all elements (CPUs, storage, bandwidth, managed services, consultancy and more) necessary to host an application and make it simultaneously available to an almost unlimited number of clients through the Internet or private network.

"This flexibility will allow PbE to cater to a wide variety of e-business needs, effectively," said Joseph Ma, President, Data Center Services of PCCW. "PbE will provide substantial incremental revenue opportunity to Powerb@se with the flexibility and distinctive service this new technology provides."

The powerful Internet "engine" that is hosted in the Powerb@se Data Center in Hong Kong is equipped with more than 300 processors capable of handling more than six gigabits of user requests. It will soon offer unsurpassed capacity and power, with "extendibility" of up to 2000-plus processors.

Installing ASPE's engine in PCCW's facilities has been made possible because of the advanced infrastructure at Hong Kong's Powerb@se data center.

Companies will also find using the PbE service cost efficient, as they can now convert capital expenditures into variable cost, while still having access to industry-standard hardware and software such as Sun's Solaris, Microsoft's NT/W2K, LINUX, Intel and Sparc. This means client companies avoid confronting these huge operating costs on their own.

Here's how the system works:

PbE's computing resources are offered as a service, similar to an electric utility company. A client contracts for a certain computing capacity to handle the average number of simultaneous requests from its site. Because of PbE's flexible `scalability,' computing power is made available `on demand', meaning e-businesses can select just enough for their business needs in terms of platform, software, usage level and degree of support. Additional capacity can be acquired or reduced, subject to seasonal or peak traffic requirements. All these value-added services are supplementary to Powerb@se's original, best-of-class services in the industry, so high-bandwidth Internet connectivity, security and global reach are still provided as a standard.

"We consider this a great partnership," said ASPEngines Chairman Dr. Steve Chen. "With its quality of service, bandwidth availability, world-class facilities and marketing experience, Powerb@se makes for a strong foundation for a truly successful business."

Powerb@se and ASPEngines share much by way of innovation and technical expertise, creating benefits for the joint venture that come from the most synergistic alliances. The presence of SMC in the venture also augurs well for the enterprise, with the Sybond initiative having driven expansion of many a successful hi-tech company from Silicon Valley to all corners of the globe.

PbE plans to expand into greater China, while setting up new offices in core Asia Pacific cities within the year.

For Media inquiries, please call:
Linda Lee
Corporate Communications
PCCW
Tel: +852-2514-8052
Email: linda.lee@pcg-group.com

Shiu Wai Shing, Press Services Director
Bentley Porter Novelli Limited
Tel: +852-2827-2131

For Investor Relations inquiries, please call:
Simon Smith, Director of Corporate Institutional Investor Relations
PCCW
Tel: +852-2883-0858
Email: lir@pcg-group.com