Stripping out non-cash and non-operating items, the Group's results actually improved from a net loss of approximately HK$323 million in 1H07 to a net profit of approximately HK$16 million in 1H08.

-- The Group's Macau gaming business, operated through 37.9%-owned NASDAQ listed Melco Crown Entertainment Limited ('MPEL') staged a major turnaround. The Group's attributable profit from MPEL amounted to approximately HK$131 million in 1H08 (1H07: attributable loss of HK$298 million).

-- Adjusted EBITDA of MPEL increased dramatically from a negative amount of US$13.3 million to a positive amount of US$113.5 million.

-- Crown Macau delivered impressive returns with VIP rolling chip volume increasing by 3,690% on a year-on-year basis to approximately HK$294.9 billion (US$37.9 billion) in 1H08. Crown Macau's market share jumped to around 14% in June 2008, making it one of the largest VIP casinos in the world in terms of betting volume.

-- Mocha Clubs continued to deliver a steady source of income to MPEL.

-- City of Dreams has its first phase and four hotels topped out and is scheduled for opening in 1H09.

Melco International Development Limited ('Melco' or the 'Group', HKEx Code: 200) announced its interim results for the six months ended June 30, 2008.

For the six months ended 30 June 2008, net loss attributable to shareholders amounted to approximately HK$614 million. However, stripping out those non-cash and non-operating items, results actually improved from a net loss of approximately HK$323 million in 1H 2007 to a net profit of approximately HK$16 million in 1H 2008. Please refer to the Results Announcement on the Stock Exchange website for detailed Financial Review.

Mr Lawrence Ho, Group Chairman and CEO of Melco, said, 'I am delighted that Melco secured separate listing for most of its business units at different stock exchanges in major financial centres around the world. In addition to giving the different business units their independent financing platform for supporting development, the endeavour has also helped to consolidate Melco's leadership in the leisure, gaming and entertainment sector in Asia. All business units are moving on the right tracks and we are confident that their efforts in streamlining their businesses are going to bear fruits soon and in turn have better contribution to Melco.'

Business Review

LEISURE, GAMING AND ENTERTAINMENT

Melco Crown Entertainment Limited (Nasdaq: MPEL - News)

The Group's gaming operation is principally conducted through 37.9%-owned NASDAQ listed associate Melco Crown Entertainment Limited ('MPEL'). The Group's attributable contribution from MPEL swung from a loss of approximately HK$298 million in 1H07 to a profit of approximately HK$131 million in 1H08. The turnaround was primarily due to Crown Macau's strategy to enhance its focus on the VIP rolling chip segment in Macau.

Crown Macau, the Group's first hotel-cum-casino project targeting high rollers segment, reported substantially improved operating performance with VIP rolling chip volume increasing by 3,690% on a year-on-year basis to approximately HK$294.9 billion (US$37.9 billion) in 1H08. Crown Macau's market share jumped to around 14% in June 2008, making it one of the largest VIP casinos in the world in terms of betting volume.

Mocha Clubs also reported improved results with solid growth in net operating revenue and adjusted EBITDA. Average net win per machine per day also improved to US$228 in the second quarter of 2008 from US$223 for the corresponding period in 2007.

Development of City of Dreams remains on track. The first phase of the project was topped out in April 2008 and is scheduled to open in 1H09. All four hotel towers in the project, namely, Crown Towers, Hard Rock and the twin-towered Grand Hyatt hotels, had topped out and interior fit-out work is well underway.

Elixir Gaming Technologies, Inc. (AMEX Ticker: EGT)

Elixir Gaming Technologies, Inc. (AMEX: EGT - News; 'EGT'), in which the Group has an effective equity interest of 39.8%, has made solid progress. As at 12 August 2008, there were 1,262 gaming machines installed on a revenue participation basis across 14 venues in the Philippines and Indo China. As a result of some start-up problems and delay in ramping up, contribution from EGT in 1H08 was below expectation. However, management have proactively made significant effort and initiatives to improve performance. These initiatives have started to bear fruits, as evidenced by the net win per machine per day improving to US$51 in July 2008, up from US$29 for the second quarter and US$33 in the month of June. Management expects to see continuing improvement in the second half of this year.

Melco LottVentures Limited (HKEx: 8198)

Melco LottVentures Limited, in which the Group has an effective interest of 37.5% on a fully diluted basis (assuming full conversion of all outstanding convertibles), made its first move to build a Pan Asian portfolio of lottery business. In March 2008, it announced the acquisition of the entire issued share capital of KTeMS Co. Ltd., which has a 14% equity interest in Nanum Lotto Co. Ltd., a consortium holding exclusive rights to operate off-line lotto games in South Korea. The acquisition was approved by shareholders at an extraordinary general meeting on 15 April 2008. Detailed due diligence check is near completion and the transaction is scheduled for formal closing before the end of September 2008.

Melco China Resorts (Holding) Limited (TSXV: MCG, MCG.WT)

In May 2008, the Group successfully obtained a listing status for its ski resort business in China on the TSX Venture Exchange in Toronto, Canada. Through a series of complex transactions involving the reverse take-over of Virtual China Travel Services Co., Ltd. ('VCTS') (formerly NEX: CTX.H), the Group now owns 49.3% of Melco China Resorts (Holding) Limited (TSXV: MCG, MCG.WT) ('MCR'). This is an important step for MCR which aspires to build a portfolio of premier ski resort destinations in China.

MCR acquired 5 ski resorts last year and plans to develop them into world- class luxury all-year mountain resorts. These mountain resorts also have significant potential for the development of premium real estates for discerning buyers. Related works have commenced, beginning with Sun Mountain Yabuli, situated in Harbin. The development at Yabuli comprises three new five-star hotels and is expected to be re-opened for business in the coming winter season towards the end of 2008. It has topped out two of the hotels and broken ground on its first luxury home project which will be available for sale later this year. Initial improvement work of the Sky Mountain Beidahu and Star Mountain Beijing resorts were completed. Planning for the development of Adventure Mountain Changchun resort and the private Lotus Mountain Club, is also underway.

'Melco is expanding its portfolio of leisure and entertainment facilities to serve the needs of an increasing number of middle-income leisure seekers in Asia. Despite economic uncertainties and tightening of travel restrictions for Mainland tourists visiting Macau, we remain optimistic on the medium and long term growth potential of China and the Asia-Pacific region. We will continue to respond to changing dynamics with well-thought-out strategies and imaginative products. While pursuing these ambitious goals, Melco will continue upholding the highest standards of corporate governance and social responsibility, while remaining committed to bringing its shareholders the highest possible returns,' Mr. Ho concluded.