09:50     TIANJIN DEV<00882> - Announcement (2)                               

    In respect of the collection of toll fees under the new                   
    arrangement, the approach in collecting the toll fees under the           
    new arrangement is different from the previous one. The said ratio        
    of 40% in the formula was negotiated and determined by the parties        
    to the Agreement. Before the new arrangement, vehicle passing             
    through the two toll stations were counted once; under the new            
    arrangement, vehicles passing through the two toll stations will          
    be counted twice and will be included in the calculation of the           
    toll fees under the pre-determined formula. After considering the         
    expected increase in the demand of the vehicle users, Tianjin             
    Jinzheng Transportation Company anticipates that the turnover of          
    toll fees collected from the Eastern Outer Ring Road under the            
    new arrangement will be more than those collected under the               
    previous approach.                                                        
                                                                              
    In consideration of the City Toll Collection Office agreeing to           
    collect the toll for the Eastern Outer Ring Road for Tianjin              
    Jinzheng Transportation Company, Tianjin Jinzheng                         
    Transportation Company shall pay to the City Toll Collection              
    Office a toll collection management fee which is equivalent to            
    5% of the total tolls received by Tianjin Jinzheng Transportation         
    Company from the City Toll Collection Office in accordance with           
    the reports in a financial year (the ``Management Fee''). The             
    Management Fee is payable to the City Toll Collection Office by           
    Tianjin Jinzheng Transportation Company within one month after            
    the end of each financial year of Tianjin Jinzheng Transportation         
    Company.                                                                  
                                                                              
    The term of the Agreement (the ``Term'') was implemented on 1st           
    June, 2003 and shall continue thereafter until 30th November,             
    2027 and in the event that extension of the exclusive right to            
    operate, manage and maintain the Eastern Outer Ring Road and the          
    fee collection right of Tianjin Jinzheng Transportation Company           
    in respect of the Eastern Outer Ring Road is approved, the term           
    shall be automatically extended until the expiration of such              
    further period.                                                           
                                                                              
    For the year ended 31st December, 2002, the toll fees collected           
    by Tianjin Jinzheng Transportation Company from Eastern Outer             
    Ring Road constituted approximately 7% of the total audited               
    consolidated turnover of the Company.                                     
                                                                              
    According to Tianjin Jinzheng Transportation Company, the new             
    arrangement for toll collection will not cause any material               
    adverse financial impact on the Company, in particular, it will           
    not cause any material adverse impact on the interests of                 
    investors. As a result, the directors of the Company are of the           
    view that the information on the new arrangements for toll                
    collection in the Eastern Outer Ring Road is not of a                     
    price-sensitive nature and this announcement is made for the              
    general information of the shareholders of the Company.                   
                                                                              
    By Order of the Board                                                     
    Wang Guang Hao                                                            
    Chairman                                                                  
    Hong Kong SAR, 22nd August, 2003