Exhibit 99.2
Hutchison Whampoa and Cheung Kong (Holdings) Limited
Invest $50 Million In US-Based Priceline.com
NORWALK, Conn., February 15, 2001 . . . Hutchison Whampoa Limited
("Hutchison") and Cheung Kong (Holdings) Limited ("CKH") today announced that
they have invested an aggregate $50 million in US-based priceline.com (Nasdaq:
PCLN). Hutchison, one of Asia's largest companies with a market capitalization
of $53 billion, already has joined with priceline.com in an alliance to bring
priceline.com's business concept to 2.6 billion consumers in Asia. Hutchison and
CKH also announced at the same time that they have entered into an agreement to
purchase an aggregate of 11.3 million shares of priceline.com common stock from
Jay S. Walker for an aggregate purchase price of approximately $24 million.
Hutchison and CKH invested an aggregate $50 million in priceline.com by
purchasing approximately 24 million shares of priceline.com common stock at
$2.10 per share, a price determined based on the market price of priceline.com's
stock during the negotiation period. In connection with the sale, Hutchison and
CKH received certain registration rights from the Company. Hutchison also will
receive a seat on priceline.com's Board of Directors. That seat will be assumed
by Ian F. Wade, Group Managing Director of Hutchison's A.S. Watson Group.
Hutchison also reaffirmed its commitment to priceline.com's business model by
increasing its interest in Hutchison-Priceline Limited ("HPL"), the companies'
Asia venture. Hutchison will purchase $9.5 million worth of HPL convertible
notes, increasing its HPL interest to 65%. Hutchison and Cheung Kong also will
receive for a period of six months the exclusive rights to negotiate with
priceline.com for the setup of a potential business in Japan.
Hutchison Group Managing Director Canning Fok said, "We know priceline.com well
from our venture in Asia, and are excited by its long-term growth prospects. We
are impressed with the proven strength of priceline.com's business model, and
the tremendous brand recognition that it has built since its inception only
three years ago. We at Hutchison are therefore very pleased to participate in
the future of this company as a significant investor and an active member of the
Board of Directors. In the meantime, we are preparing for the launch of our
Hutchison-Priceline business in Asia."
"Priceline.com is delighted to welcome Hutchison and Cheung Kong as strategic
investors," said priceline.com Chairman Richard S. Braddock. "We have been
pleased by how well Hutchison and priceline.com have worked together to develop
our Asian partnership, and now we have both Hutchison and Cheung Kong as
partners in a much deeper sense. We have a shared vision in the long-term
success of priceline.com, and with the considerable commercial experience and
entrepreneurial skills that Hutchison and Cheung Kong bring to the table, we are
now better positioned than ever to realize that vision," he added.
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Hutchison Whampoa is a conglomerate with a market capitalization of over $53
billion. Among its many businesses, it is one of Asia's largest owners and
operators of Internet and telecommunications infrastructure offering a wide
range of related services. These include fixed-line services, ISP and ICP
services, Web hosting services, fiber optics broadband networks, mobile
telephone data and internet services, paging, trunked mobile radio, VSAT and
radio broadcasting services.
Hutchison's telecommunications and e-commerce related operations have been
growing rapidly. The Company has teamed up with Global Crossing to further
expand its global connectivity and to pursue fibre optic broadband network
opportunities in the Greater China Region. Cooperation with NTT DoCoMo, which
owns 19% of Hutchison's mobile communications businesses in Hong Kong offers its
customers advanced mobile Internet opportunities. Recently the Group has won 3G
licences in Italy and Sweden with local partners and Austria respectively.
Hutchison had earlier won the bid for the largest 3G licence in the UK and
subsequently formed Hutchison 3G UK -- a joint venture company with NTT DoCoMo
and KPN Mobile, to build and operate a national Universal Mobile
Telecommunications System network.
With Cheung Kong (Holdings) and other strategic partners, Hutchison is a
substantial shareholder of TOM.COM Limited, the mega portal for China related
"infotainment" Internet content. Hutchison and Cheung Kong together also have a
substantial stake in iBusiness corporation Limited, which includes partners
Hongkong and Shanghai Banking Corporation, and Hang Seng Bank. In addition to
the alliance with Priceline.com, the Company has also teamed up with CSFBdirect
(formerly DLJdirect) to expand online investment services in the region. A joint
venture with Internet Capital Group has also been formed to pursue business to
business e-commerce opportunities. Recently, Hutchison has joined forces with
PetroChina, CNPC and other partners to build China's first B2B portal for the
oil and gas industry. In addition, the Group has launched a number of other
major portals including LINE (Logistics Information Network Enterprise), which
provide transportation e-commerce services and bigboXX.com, a B2B portal focused
on office supplies and business services.
About priceline.com
Priceline.com is the Name Your Own Pricesm Internet pricing system that provides
services across four broad product categories: a travel service that offers
leisure airline tickets, hotel rooms and rental cars; a personal finance service
that offers home mortgages, refinancing and home equity loans through an
independent licensee; an automotive service that offers new cars; and a
telecommunications service that offers long distance calling services.
Priceline.com licenses its business model to independent licensees, including
pricelinemortgage and certain international licensees. In these arrangements,
priceline.com generally receives royalties for licensing its intellectual
property. Priceline.com also holds securities carrying the right to purchase a
significant equity stake in the licensees under certain conditions. Unless those
rights are exercised, the results of licensee operations will not be included in
priceline.com's financial statements.
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About Cheung Kong
Cheung Kong (Holdings) Limited is the flagship of the Cheung Kong Group which
consist of four leading Hang Seng Index constituent stocks ? Cheung Kong
(Holdings) Limited, Hutchison Whampoa Limited, Cheung Kong Infrastructure
Holdings Limited and Hongkong Electric Holdings Limited. Cheung Kong Holdings'
major businesses include Property Development and Management; IT/Internet
operations; and Investments.
About Hutchison Whampoa
Hutchison Whampoa is a Hong Kong-based multinational conglomerate with a market
capitalisation of about US$53 billion. Hutchison's consolidated turnover in 1999
was over US$7.1 billion, and earnings after tax and exceptional items were
approximately US$15.1 billion.
Amongst its five core businesses, Hutchison is one of the leading owners and
operators of Internet and telecommunications infrastructure, offering a wide
range of related services. These include fixed-line services, internet services,
fiber optics broadband networks, mobile telephony (voice and data), paging,
trunked mobile radio, VSAT and radio broadcasting services. As part of its
retail services, the Group recently constructed the largest shopping center in
Beijing and operates about 800 retail outlets in Asia. Under its property
division, Hutchison also owns and manages hotels in China, Hong Kong and the
Bahamas. For more information, please visit www.hutchison-whampoa.com.
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For press information, contact: priceline.com
Brian Ek, 203/299-8167
brian.ek@priceline.com
Hutchison Whampoa Ltd. (Hong Kong)
Laura Cheung, 852-2128-1289
laurac@hwl.com.hk
Information about Forward Looking Statements
This press release may contain forward-looking statements. Expressions of future
goals and similar expressions including, without limitation, "may," "will,"
"should," "could," "expects," "does not currently expect," "plans,"
"anticipates," "believes," "estimates," "predicts," "potential," "targets," or
"continue," reflecting something other than historical fact are intended to
identify forward-looking statements. The following factors, among others, could
cause the Company's actual results to differ materially from those described in
the forward-looking statements: adverse changes in the Company's relationships
with airlines and other product and service providers; inability to successfully
expand the Company's business model both horizontally and geographically
systems-related failures; the Company's ability to protect its intellectual
property rights; the effects of increased competition; losses by the Company and
its licensees; any adverse impact from negative publicity and negative customer
reaction relating to recent announcements concerning the Company; legal and
regulatory risks and the ability to attract and retain qualified personnel. For
a detailed discussion of these and other factors that could cause the Company's
actual results to differ materially from those described in the forward-looking
statements, please refer to the Company's most recent Form 10-Q and Form 10-K
filings with the Securities and Exchange Commission.