Commenting on the company’s unaudited financial results for the fourth quarter and full year ended 31 December 2007, Lawrence Ho, Chief Executive Officer and co-Chairman of Melco PBL Entertainment, said: “Good progress has been made in the period since our last quarterly report. Core rolling chip business at Crown Macau has continued to make significant market share gains.“ He added that in January hold-adjusted EBITDA had meaningfully increased from December levels and that February was off to a good start.

“It is gratifying to see Crown Macau on the path to reaching its full potential, following our decision over six months ago to execute a reconfiguration of the property to focus heavily on the junket supported rolling chip market segment. This emphasizes the original vision for Crown Macau, and we view our initial performance thus far in 2008 as clear validation of this strategy.”

Estimated table games market share of Crown Macau, which opened in May 2007, was 9% in December, 16% in January and approximately 18% so far in February. “Though we are pleased with growth to date, we expect to continue to expand our existing gaming volumes at Crown Macau through a combination of market share gains and the underlying robust growth in the market.” In the fourth quarter of 2007, net operating revenue at Crown Macau totalled US$153.6 million.

The final Crown Macau project cost was around US$524 million, some 3.1% below budget owing to an over provision in construction contingencies. Lawrence Ho remarked that he is particularly excited about the recent progress of City of Dreams, which he describes as the next major casino resort to open in Macau. He also said that the casino complex will play a major role in both the continued transformation of Macau into a major international destination and the future development of Melco PBL Entertainment as Macau’s leading casino operator.

Gaming revenue from the Mocha Clubs totaled US$21.6 million in the fourth quarter of 2007 and represented a 21.3% increase from US$17.8 million for the fourth quarter of 2006. In the fourth quarter of 2007, the number of gaming machines in operation at the Mocha Clubs averaged approximately 1,088 in seven locations. Average net win per gaming machine per day decreased to US$215 from US$245, as compared to the same period last year. Over the same period, the total number of gaming machines in the Macau market as a whole more than doubled from 6,546 to 13,267, based on information from the Macau Gaming Inspection and Coordination Bureau.

For the year ending December 31, 2007, the Company reported net operating revenue of US$358.6 million versus US$36.1 million for the year ending December 31, 2006. The Company reported a net loss of US$178.2 million for the year ending December 31, 2007, compared to a net loss of US$73.5 million for the year ending December 31, 2006. The net loss per share for the full year 2007 was US$0.145, compared to a net loss per share of US$0.116 for the full year 2006.

Updating other Macau projects, Melco PBL Entertainment reported that the main podium superstructure works are approximately 95% complete and the Hard Rock hotel tower and Crown Towers hotel tower construction works have progressed to the 30th and 12th floors, respectively. On 11 February the company accepted the final terms of the land concession for two adjacent land parcels on Cotai that comprise the City of Dreams site. The Company continues to review and develop its plans for development of the Macau Peninsula project. Those plans are subject to completing the acquisition of the site and certain conditions including meeting applicable Macau regulatory requirements. (E-02.20.08)

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