10:24     CONTINENTAL H<00513>-Announcement & Resumption of Trading(2)        

    (c)     the remaining balance of HK$153 million shall be paid by the      
    Purchaser to the Vendor upon Completion.                                  
                                                                              
    The Consideration was determined after arm's length negotiations          
    between the Vendor and the Purchaser with reference to the                
    carrying value inclusive of surplus of revaluation of the                 
    Property of approximately HK$180 million as at 30 June 2004.              
    The Consideration represents a premium of approximately 11.84%            
    over the audited carrying value exclusive of surplus of                   
    revaluation of the Property of approximately HK$152 million as            
    at 30 June 2004 and a discount of approximately 5.56% to the              
    carrying value inclusive of surplus of revaluation of the                 
    Property as aforesaid.                                                    
                                                                              
    Completion:                                                               
                                                                              
    Completion is subject to and conditional upon (i) the passing             
    of a resolution by the Shareholders approving the entering into           
    and implementation of the transactions contemplated under the             
    Provisional Agreement at the EGM and (ii) the Vendor having               
    showed, proved and given a good and marketable title to the               
    Property.                                                                 
                                                                              
    If the above conditions are not fulfilled on or before 28 February        
    2005, all deposits paid shall be refunded by the Vendor to the            
    Purchaser without interest within 3 working days and all                  
    liabilities of the parties to the Provisional Agreement shall             
    forthwith be determined and shall cease to have any further               
    effect. In such event, the parties shall, at the cost of the              
    Vendor, enter into and execute, and cause to be registered at             
    the Land Registry, a memorandum signifying the determination              
    of the sale and purchase of the Property.                                 
                                                                              
    The Provisional Agreement is legally binding on both parties.             
    The Vendor must sell and the Purchaser must purchase the Property.        
    Should any party fail to complete the sale and purchase in the            
    manner contained in the Provisional Agreement, the other party            
    shall have full right to sue for specific performance in lieu             
    of or in addition to claim for all losses and damages.                    
                                                                              
    INFORMATION ON THE PROPERTY AND THE PURCHASER                             
                                                                              
    The Property is No. 31 Tin Hau Temple Road, Hong Kong (the                
    Remaining Portion of Section A of Inland Lot No. 5388) and the            
    entire 27-storey residential building erected thereon. The                
    Vendor started redevelopment of the land since 1999 and completed         
    the aforesaid building in late 2003. The total gross floor area           
    of the aforesaid building is approximately 41,522 square feet.            
    As of today, sales activity has not yet commenced and the Property        
    is still vacant.                                                          
                                                                              
    The Property was treated as an investment property in the audited         
    consolidated financial statements of the Group for the year ended         
    30 June 2004. The audited carrying value exclusive of surplus             
    of revaluation of the Property as at 30 June 2004 was                     
    approximately HK$152 million and the carrying value inclusive             
    of surplus of revaluation of the Property as at 30 June 2004              
    was approximately HK$180 million.                                         
                                                                              
    The Purchaser is principally engaged in property investment and           
    development. To the best of the knowledge, information and belief         
    of the Directors, after having made all reasonable enquiries,             
    the Purchaser and its ultimate beneficial owners are Independent          
    Third Parties and neither of them nor their respective associates         
    has any shareholding in the Company as at the date of this                
    announcement. Accordingly, no Shareholder will be required to             
    abstain from voting at the EGM.                                           
                                                                              
    REASONS FOR THE DISPOSAL