StarHub's Results For The Third Quarter Ended September 2007

• Operating Revenue Grew 11% To S$513 million
• EBITDA Improved 5% To S$164 million
• EPS Increased 20% To 4.73 Cents Per Share
• Declares Interim Dividend Of 4.0 Cents Per Share

Singapore, 1 November 2007 – StarHub today announced a net profit of S$81 million for the quarter ended 30 September 2007. This resulted in an earning per share of 4.73 cents; an increase of 20% year-on-year (Y-o-Y). Group operating revenue grew 11% to S$513 million, from S$461 million in 3Q-2006.

The Group’s EBITDA improved 5% to S$164 million, compared to S$157 million in 3Q-2006 Y-o-Y. Capital expenditures were similar at S$44 million in 3Q-2007 compared to 3Q-2006.

The Mobile business was the top revenue performer this quarter, increasing 14%, and it continues to account for the largest share of the Group’s revenue mix. This was contributed by strong revenue momentum in both pre-paid and post-paid services. Broadband registered 12% growth, while Cable TV revenue showed 9% growth and the Fixed Network business recorded a 4% improvement.

Financial Highlights

3Q-2007 Y-o-Y Financial & Business Highlights

• Mobile revenue increased 14% to S$266 million from S$234 million. Post-paid mobile services revenue grew 12% to S$198 million while pre-paid mobile services revenue expanded 20% to S$68 million. ARPU came in strong with post-paid at S$78 and pre-paid at S$26. Mobile customer base went up 15% to 1.68 million. It consisted of 794,000 post-paid customers, 40% of which are using 3G handsets and are on 3G plans, and 889,000 pre-paid customers. As at end August 2007, Singapore’s mobile market penetration was at 110.7%. 
• Cable TV revenue grew 9% to S$86 million and ARPU improved 7% to S$51. This was achieved with 4% growth in the Cable TV customer base, now totaling 499,000. Household penetration is 44.3%, compared to 42.7% a year ago. The number of customers taking the Digital Cable services had the largest quarterly increase this year, now at 384,000 households, and representing 77% of the total Cable TV customer base. 
• Broadband revenue registered solid growth of 12% to S$62 million. ARPU is up S$1 to S$60. Broadband subscription-based customers expanded 10%, closing the quarter with 338,000 customers. 
• Fixed Network revenue is up 4% to S$73 million from S$71 million. The main contribution came from higher data & internet revenue growth, which expanded 16% Y-o-Y.
• The percentage of triple-service Hubbing households grew by 15%. Hubbing households ARPU recorded 7% growth to S$129.20 from S$120.70.

“Our Hubbing strategy continues to deliver value to our customers and create value for our shareholders. We are pleased with our results, especially given the competitive intensity this year. In particular, our Mobile business grew faster this quarter than any other quarter this year,” said Mr Terry Clontz, CEO of StarHub.

“Although we are experiencing higher sales costs this year, with three of our four lines of business generating double-digit top-line growth, we are able to deliver double-digit EPS growth,” added Mr Clontz.

Outlook for FY2007
Based on the current outlook, barring any unforeseen circumstances and changes in the economic and market conditions, we are revising our 2007 guidance to expect Group’s operating revenue to be higher at about 11%, blended EBITDA margin on service revenue to be around 34%, and the full year cash capital expenditure, as a ratio of operating revenue to be approximately 12%.

We maintain our guidance to pay a minimum annual cash dividend for the full financial year 2007 of 15.5 cents per ordinary share, which would assume a dividend payment of 4 cents per quarter for the remainder of the year.

For more details on the Group's performance for 3Q-2007 and outlook for FY2007, please visit www.starhub.com/ir. Materials available at this website include the investor presentation and unaudited results for the second quarter ended 30 September 2007.

“Some of the statements in this news release constitute "forward-looking statements" that do not directly or exclusively relate to historical facts. These forward-looking statements reflect StarHub Ltd’s current intentions, plans, expectations, assumptions and beliefs about future events and are subject to risks, uncertainties and other factors, many of which are outside StarHub Ltd’s control. Important factors that could cause actual results to differ materially from the expectations expressed or implied in the forward-looking statements include known and unknown risks. Because actual results could differ materially from StarHub Ltd’s current intentions, plans, expectations, assumptions and beliefs about the future, you are urged to view all forward-looking statements contained in this news release with caution."