HONG KONG, July 13, 2010 (GLOBE NEWSWIRE) -- Hong Kong Broadband
Network, a wholly owned subsidiary of City Telecom (HK) Limited
(HKSE:1137) (Nasdaq:CTEL), recently launched a free 6 months service
promotion for new customers switching over from incumbent PCCW's
Netvigator broadband service. The offer is specially targeting new
customers to HKBN, and offers the first 6 months free for a 30 months x
HK$99/month contract. Please see the Appendix for details.

Given a matured Hong Kong broadband marketplace with household
broadband penetration of 82%*, the majority of HKBN's growth is coming
from existing users from other operators. We found that once a new user
has experienced our symmetric 100Mbps service, the churn rate is
extremely low at below 1.0% per month. Whilst our broadband service
subscriptions have been growing at a record pace, with 73,000 net
additions for the 6 months to 28 Feb 2010, compared with 75,000 net
additions for 12 months to 31 Aug 2009, we want to continue to fuel our
growth toward our 10-year Big Hairy Audacious Goal (BHAG) of becoming
the largest IP service provider by 2016.

"Our 6 months free promotion is designed to attract existing legacy
copper-based xDSL users to experience the 'WoW' factor of our Fibre
based symmetric 100Mbps service. 6 months free will allow existing xDSL
contracted users to concurrently use our service side-by-side without
additional cost, after which, we are very confident these consumers can
tell the difference and finally choose HKBN's fibre internet access,"
said Ms. June Lam, Associate Director, Marketing, HKBN.

*Office of the Telecommunications Authority Key Telecommunications
Statistics, March 2010,
http://www.ofta.gov.hk/en/datastat/key_stat.html

About City Telecom/Hong Kong Broadband Network Limited

Established in 1992, City Telecom (H.K.) Limited (HKSE:1137)
(Nasdaq:CTEL) provides integrated telecommunications services in Hong
Kong via its own self-built fibre network. City Telecom's wholly-owned
subsidiary, Hong Kong Broadband Network Limited (HKBN), is the fastest
growing broadband service provider in Hong Kong. HKBN offers a
diversified portfolio of innovative products that service over
1,027,000 subscriptions for broadband, local telephony and IP-TV. The
Company has built a solid market position with top-of-the-line
applications and practices enabling it substantial growth. The company
takes great pride in developing its 3,000 Talent force into a
competitive advantage. Additional information is available at
www.ctigroup.com.hk.


CONTACT:  City Telecom (H.K.) Limited
          Corporate Communications
          Ms. Jessie Cheng
            +852 3145 4118
            Fax: +852 2199 8372
            chengcm@ctihk.com
          Investor Engagement
          Ms. Peggy Chan
            +852 3145 6068
            Fax: +852 2199 8655
            investor_engagement@ctihk.com