Hutchison Whampoa says that it plans to stay on 3

In response to some market speculation about a possible exit of Hutchison Whampoa from Hutchison 3G UK, the company issued a press release stating that it categorically denies the rumours and reiterates its commitment to H3G UK. The company says in the press release the 3 UK is showing strong signs of growth.

HWL Group Managing Director Canning Fok said, ''3 UK has made excellent progress. The network is performing very well and there is an ample supply of handsets in our stores. The range of products and contents is expanding quickly.

''The newly launched LG phone has been well received and sales figures are very encouraging. Our risk period is over and we are now in the growth phase of our business. Our subscriber numbers are increasing rapidly and we will make an announcement in August on the updated figure. Revenue is growing, and HWL is still confident of an EBITDA breakeven in 2005.

''With US$18.4b cash and marketable securities on hand, our financial position remains very strong,'' Mr Fok added.