10:07     HK CONSTRUCTION<0190> - Announcement (4)                            

                                                            Approxmiate       
                                Date of                     contract          
    Name of         Joint       joint     Description       value of          
    the joint       venture     venture   of the            China             
    venture         partner     agreement construction      Everbright Group  
                                          project                             
    HK ACE Joint    The Company (30%);      2nd June, 1999  Main contractor of
    the  HK$277 million                                                       
                                                                              
    Venture China Everbright Holdings               project of KCRC West      
            Co. Limited (20%);              Rail Contract No. CC-212          
            AMEC International              Tuen Mun North Station            
            Construction Limited            in Hong Kong.                     
            (25%); China Railway                                              
            Construction Corporation                                          
            (25%)                                                             
                                                                              
    HK ACE Joint    The Company (30%);      2nd June, 1999  Main contractor of
    the  HK$271 million                                                       
    Venture China Everbright Holdings               project of KCRC West      
            Co. Limited (20%);              Rail Contract No. CC-213          
            AMEC International              Tuen Mun Centre Station           
            Construction Limited            in Hong Kong.                     
            (25%); China Railway                                              
            Construction Corporation                                          
            (25%)                                                             
                                                                              
    The aggregate amounts of the above contracts for the year ended           
    31st December, 1999 were approximately HK$548 million, which              
    represents approximately 25.5% of the turnover of the Group for the       
    year ended 31st December, 1998 and approximately 26.2% of the             
    audited consolidated net asset value of the Group as at 31st              
    December, 2000.                                                           
                                                                              
    B.      Construction projects which the China Everbright Group is the     
    primary developer                                                         
                                                                              
    The Group is currently acting as the main contractor of two               
    construction projects in which the China Everbright Group is the          
    primary developer. A summary of these projects is set out below:          
                                                                              
    The China                                          Approximate            
    Everbright      Contract   Description of the      contract value to the  
    Group ownership date       construction project    China Everbright Group 
                                                                              
    100%    15th April, 1998   Main contractor of the project HK$1,000 million
                               of Shanghai 21st Century Centre                
                               Building in the PRC (Note 1)                   
                                                                              
    80% (Note 2)                                                              
            18th October, 1998  Main contractor of the project  HK$320 million
                                of Qingzhou Min River Bridge                  
                                in Fuzhou, the PRC                            
                                                                              
    Notes :                                                                   
                                                                              
    (1).    Such construction project was approved under a resolution at      
    the extraordinary general meeting of the Company at 17th                  
    June, 1998 and was not covered under the waiver.                          
                                                                              
    (2).    The Company entered into a construction contract with             
    Fuzhou Guang Min Road and Bridge Construction &                           
    Development Company Limited, a sino-foreign co-operative                  
    joint venture which is owned by "*" and Greenway Venture Limited (a       
    company owned as to 80% by the China Everbright Group and 20% by the      
    Group).                                                                   
                                                                              
    The amount of the contract for Qingzhou Min River Bridge in               
    Fuzhou, the PRC, for the year ended 31st December, 1998 were              
    approximately HK$320 million, which represents approximately              
    20.9% of the turnover of the Group for the year ended 31st                
    December, 1997 and approximately 15.3% of the audited                     
    consolidated net asset value of the Group as at 31st December,            
    2000.                                                                     
                                                                              
    FUTURE TRANSACTIONS WITH THE CHINA EVERBRIGHT GROUP                       
                                                                              
    Given the nature of the Group's business, the Group has from time to time 
    entered into joint ventures with the China Everbright Group to undertake  
    construction projects and acted as main contractor of the development     
    projects of the China Everbright Group.                                   
                                                                              
    As China Everbright has been a substantial shareholder of the Company,    
    such transactions constitute connected transactions under the Listing     
    Rules, which would normally require full disclosure and/or prior          
    Independent Shareholders' approval. A waiver from strict compliance with  
    the relevant requirements of the Listing Rules, which has been approved by
    the Independent Shareholders, was granted by the Stock Exchange on 22nd   
    June, 1998. Details of the basis of the waiver were set out in the        
    circular of the Company dated 22nd May, 1998. Since such waiver has       
    expired on 22nd June, 2001 but China Everbright continues to be a