Macau: A Sure Bet

Throughout its history, Macau has been a popular tourist destination for Hong Kong, locals and residents of Mainland China. Macau has enjoyed an unprecedented economic boom following the decision by the Macau government in 2002 to deregulate its 40-year-old gaming industry.

The decision to deregulate the gaming industry in Macau has attracted substantial investment commitments from world-renowned developers of casino and entertainment resorts. Each operator is tasked with developing quality leisure and entertainment attractions together with the latest casino facilities, ensuring Macau's reputation as a top travel destination.

Relatively easy access from major capital cities in Asia has facilitated this vision. Located in China's Pearl River Delta region, Macau is an hour away by a 24-hour ferry service from Hong Kong's nearly seven million inhabitants and just fifteen minutes away by helicopter. In addition, China, Taiwan, Japan, South Korea, Thailand, Malaysia, Singapore, Indonesia and the Philippines, with a combined population of almost two billion, lie within a 4,000-kilometer radius of Macau, making it the center for gaming in the Asia Pacific region.

Visitor arrivals to Macau reached almost 25 million in 2010, representing a year-on-year increase of nearly 15% and more than doubled in 10 years.

Macau officially overtook the Las Vegas Strip as the largest gaming market in the world in 2006. In 2010, Macau's gaming revenues reached US$23.4 billion, a 57.8% increase over the previous year. Considering the numerous large-scale plans in place to improve the city's infrastructure, including the Hong Kong-Zhuhai-Macau Bridge, the Pac On Ferry Terminal, and the light railway, Macau is in a favorable position for growth in the years to come.

At Melco Crown Entertainment, we are extremely confident that our commitment to quality, professional integrity and innovation will set our Company apart and enable us to capture the opportunities presented within Macau's gaming industry and thereby maximize the returns of our shareholders.

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