ASSURANCE STATEMENT

To the Directors of MTR

Introduction

MTR Corporation ("MTR") has issued a Sustainability Report 2003 ("the Report") covering its approach to corporate sustainability and detailing the social responsibility, environment and economic contributions it has made during 2003. We have been asked to consider selected statements made and data reported in the Report. The objectives of our assurance, the scope of our work and our findings are detailed below.

The Directors are solely responsible for the contents of the Report, the reliability of the information presented and its maintenance and integrity on the internet. Our responsibility is only to the management of the company and is to report on the statements and data indicated based on our assurance work and on the terms agreed with management for this purpose. The work described below has been carried out solely for the Directors and was not planned in contemplation of any third party relying on it. Accordingly, PricewaterhouseCoopers will accept no responsibility for the use or interpretation of the results of its work by any third parties.

Our objectives

The overall objectives of our procedures were to:

• Assess whether the selected statements and data in the Report are supported by underlying evidence;
  

• Read Sections 5, 6 and 7 of the Report to assess the consistency of the information presented with the findings of our work.
  
  

Assurance work performed

Our procedures were limited to:

• Interviews with management and personnel in the sustainable development, operations, property, project and human resources divisions, involved in providing information for inclusion in the Report in relation to the selected statements and data;

• Examination on a test basis of documentary evidence relating to the selected statements and data on which we report;
  

• Review of the relevant sections of the Report relating to the selected statements and data to check for consistency with the findings of our work.

Basis of our work

There are no generally accepted international standards for the preparation or assurance of sustainability reports. We have therefore based our approach on emerging best practice and the underlying principles within international standards for assurance engagements. We planned and performed our work to obtain limited assurance on the information reviewed. We believe our work provides a reasonable basis for our findings. In preparing our conclusion, we have not conducted an audit as defined in auditing standards, and we do not express an audit opinion on any data in the Report.

Considerations and Limitations

It is important to read the statements and data in the context of the reporting policies and limitations in Section 11. Environment and social responsibility data is subject to many more inherent limitations than financial data given both their nature and the methods used for data determination, calculation or estimation.

We have not provided assurance over all contents of this report, nor have we undertaken work to confirm that all relevant issues are included.
We have not carried out any work on data reported in respect of targets or future projections. We have not provided assurance over previous years' data.

We have not performed work on the maintenance and integrity of information in the Report published on the MTR website.
It is also important that, in order to obtain a thorough understanding of the financial results and financial position of MTR, the reader should consult the MTRC Annual Report for the year ended 31December 2003.

Conclusion

We have reported to management that:

• based on the work completed, the statements and data in the paragraphs in the Report marked with the symbol are supported by underlying evidence. Nothing has come to our attention to indicate that the statements require any material adjustment or that the data is materially misstated;
  

• the information presented in Sections 5, 6 and 7 relating to the selected statements and data are consistent with the findings of our work.