10:24     CONTINENTAL H<00513>-Announcement & Resumption of Trading(3)        

    The Company is an investment holding company. The principal               
    activities of the Group are the designing, manufacturing,                 
    marketing and trading of fine jewellery and diamonds. The Group           
    also maintains an investment portfolio including property                 
    investment and development and other industries.                          
                                                                              
    The Directors consider that the terms of the Provisional                  
    Agreement to be fair and reasonable and in the interests of the           
    Company and the Shareholders as a whole as the Disposal provides          
    the Company an opportunity to realise the Property at a price             
    comparable to the prevailing market valuation.                            
                                                                              
    As a result of the Disposal, the Group is expected to record              
    an unaudited surplus of approximately HK$18 million, being the            
    difference between the Consideration and the audited carrying             
    value exclusive of surplus of revaluation of the Property of              
    approximately HK$152 million as at 30 June 2004, before deduction         
    of any related costs and expenses.                                        
                                                                              
    Gradual economic recovery in Hong Kong has boosted investors'             
    confidence in the property market. This is evidenced by the               
    recent increase in both prices and sales activities of the                
    residential and commercial property markets. In order to broaden          
    and diversify the Group's income source, the Company will                 
    continue to look for suitable opportunities for investing in              
    the property market and at the same time, maintain its market             
    competitiveness in the fine jewellery market by keeping its               
    production costs low and introducing innovative products and              
    styles for different target segments.                                     
                                                                              
    USE OF PROCEEDS                                                           
                                                                              
    The entire sale proceeds from the Disposal will be used as the            
    Group's general working capital.                                          
                                                                              
    GENERAL                                                                   
                                                                              
    The Disposal constitutes a major transaction for the Company              
    under Rule 14.06 of the Listing Rules and is subject to the               
    approval by the Shareholders at the EGM. A circular containing,           
    among other things, further details of the Disposal, the Property         
    Valuation and a notice of the EGM, will be despatched to the              
    Shareholders as soon as practicable in accordance with the                
    requirements of the Listing Rules.                                        
                                                                              
    RESUMPTION OF TRADING                                                     
                                                                              
    At the request of the Company, dealings in the Shares on the              
    Stock Exchange were suspended with effect from 9:30 a.m. on 4             
    January 2005 pending the release of this announcement.                    
    Application has been made for the resumption of trading in the            
    Shares on the Stock Exchange with effect from 9:30 a.m. on 5              
    January 2005.                                                             
                                                                              
    DEFINITIONS                                                               
                                                                              
    "Board" the board of Directors                                            
                                                                              
    "Company"       Continental Holdings Limited, a company incorporated      
    in Hong Kong with limited liability, the shares of which are              
    listed on the Stock Exchange (stock code: 513)                            
                                                                              
    "Completion"    completion of the sale and purchase of the Property       
                                                                              
    "Consideration" the cash consideration in a sum of HK$170 million         
    payable by the Purchaser for the acquisition of the Property              
    under the Provisional Agreement