09:19     NEW WORLD DEV<00017> & NWS HOLDINGS<00659> - Joint Ann (1)          

    The Stock Exchange of Hong Kong Limited takes no responsibility for the   
    contents of this announcement, makes no representation as to its          
    accuracy or completeness and expressly disclaims any liability            
    whatsoever for any loss howsoever arising from or in reliance upon the    
    whole or any part of the contents of this announcement.                   
                                                                              
    New World Development Company Limited                                     
    (Incorporated in Hong Kong with limited liability)                        
    ("NWD")                                                                   
                                                                              
    NWS Holdings Limited                                                      
    (Incorporated in Bermuda with limited liability)                          
                                                                              
    ("NWSH")                                                                  
                                                                              
                                                                              
    JOINT ANNOUNCEMENT IN RELATION TO THE PROPOSED ACQUISITION OF             
    ALL THE ISSUED SHARE CAPITAL OF SGC (HK GROUP) LIMITED BY DELTA PEARL     
    LIMITED                                                                   
                                                                              
    Reference is made to the press releases issued by Chow Tai Fook           
    Enterprises Limited ("CTF") and Stagecoach Group Plc ("Stagecoach")       
    respectively on 9 June 2003 about the signing of an agreement (the        
    "Agreement") between Delta Pearl Limited ("Delta Pearl"), which is an     
    indirect wholly-owned subsidiary of CTF, and Stagecoach whereby Delta     
    Pearl will acquire the entire issued share capital of SGC (HK Group)      
    Limited from Stagecoach for a gross consideration of HK$2,200 million     
    (the "Acquisition").                                                      
                                                                              
    SGC (HK Group) Limited is the 100% holding company of Citybus Limited     
    ("Citybus") which operates public bus services in Hong Kong.              
                                                                              
    As at the date of this announcement, CTF holds approximately 39% of the   
    total issued share capital of NWD which in turn holds approximately 54%   
    of the total issued share capital of NWSH.                                
                                                                              
    The respective boards of directors of NWD and NWSH wish to inform         
    shareholders and potential investors of NWD and NWSH that prior to the    
    signing of the Agreement, the board of directors of NWSH (the "NWSH       
    Board"), including all the independent non-executive directors of NWSH,   
    had considered an opportunity to acquire Citybus. After careful           
    consideration, the NWSH Board decided not to pursue that opportunity in   
    view of the NWSH Board's determination to reduce the debt level of NWSH   
    and its subsidiaries as well as the possibility of realising              
    synergistic benefits from establishing a joint venture with CTF to        
    combine the transport and related businesses of CTF and NWSH if the       
    Acquisition is completed. To achieve this objective, CTF and NWSH         
    intend to engage independent professional advisers to review the          
    feasibility and possible structures of the potential joint venture.       
    This matter is at a preliminary stage. Any joint venture, if agreed       
    upon by the relevant parties, will be subject to approvals of, among      
    others, the relevant government and regulatory authorities (if            
    required).                                                                
                                                                              
    Further details of the above developments are set out below.              
                                                                              
    This announcement is made pursuant to paragraph 2 of the Listing          
    Agreement.                                                                
                                                                              
    Reference is made to the press releases issued by CTF and Stagecoach      
    respectively on 9 June 2003 about the signing of the Agreement whereby    
    Delta Pearl, an indirect wholly-owned subsidiary of CTF, will acquire     
    the entire issued share capital of SGC (HK Group) Limited from            
    Stagecoach for a gross consideration of HK$2,200 million.                 
                                                                              
    SGC (HK Group) Limited is the 100% holding company of Citybus which       
    operates public bus services in Hong Kong.                                
                                                                              
    As at the date of this announcement, CTF holds approximately 39% of the   
    total issued share capital of NWD which in turn holds approximately 54%   
    of the total issued share capital of NWSH.                                
                                                                              
    The respective boards of directors of NWD and NWSH wish to inform         
    shareholders and potential investors of NWD and NWSH that prior to the    
    signing of the Agreement, the NWSH Board, including all the independent   
    non-executive directors of NWSH, had considered an opportunity to         
    acquire Citybus. After careful consideration, the NWSH Board decided      
    not to pursue that opportunity in view of the NWSH Board's                
    determination to reduce the debt level of NWSH and its subsidiaries as    
    well as the possibility of realising synergistic benefits from            
    establishing a joint venture with CTF to combine the transport and        
    related businesses of CTF and NWSH if the Acquisition is completed. To    
    achieve this objective, CTF and NWSH intend to engage independent         
    professional advisers to review the feasibility and possible structures