Spike to Cement PCCW Venture

Australian online entertainment content and services provider Spike Networks is set to formalize its
joint venture (JV) with broadband service provider Pacific Century Cyberworks (PCCW).

Spike shareholders will vote on the formal agreement with Hong Kong-listed PCCW in June.

Under the proposed deal, Spike will hold a 70 percent interest in the JV, while PCCW will acquire the remaining 30 percent with a two-year option to increase its equity to half.

PCCW will also take a five percent interest stake in Spike and has an
option to acquire an additional ten percent, exercisable at anytime within
12 months.

Through the partnership, Spike will provide a range of professional
Internet services throughout the region, including digital technology and
the development of e-business applications.

The deal also allows for the possibility for PCCW and Spike to work
together in relation to a number of alliances involving the distribution
and promotion of SpikeRadio over PCCW’s broadband network.

Last month Spike opened an office in Hong Kong, adding to existing bases
in Australia and Japan.

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