10:06     SOUTH EAST GP<00726> - Announcement (2)                             

    The Company is an investment holding company with its                     
    subsidiaries are principally engaged in property development              
    and investment, trading of data storage media products and                
    related equipment, manufacturing and trading of grape wine and            
    other investment projects.                                                
                                                                              
    Zouping Economic Development Zone was established in 2001 and             
    has become a provincial development zone since 2003. To                   
    encourage foreign investments, apart from providing an                    
    environment with self-contained infrastructure facilities,                
    there are also in implementation favourable land use and tax              
    policies in the zone. The Company intends to acquire the Land             
    for residential development. The development featuring a range            
    of floor plans for apartments of 6 storeys will be offered for            
    unit sales on the market. No commitments for its future                   
    development have been made as part of or in connection with               
    the acquisition of the Land. Approvals from the relevant                  
    government authorities for developing the residential                     
    properties at the Land will be applied for in due course. With            
    the growth momentum in the zone, the Directors consider that              
    the residential property development at the Land would provide            
    satisfactory returns to the Group. Therefore, the Directors               
    believe that the acquisition of the Land will enhance the                 
    property portfolio as well as future earnings of the Group.               
    It is also believed that the terms of the transaction are fair            
    and reasonable and in the interests of the shareholders of the            
    Company as a whole.                                                       
                                                                              
    DISCLOSURE UNDER RULE 13.09 OF THE LISTING RULES                          
                                                                              
    As it is considered that the proposed acquisition is a                    
    significant development in the Group's property development               
    and investment business, the Directors believe that it is                 
    appropriate to make public disclosure to enable the                       
    Shareholders and the public to appraise the position of the               
    Group pursuant to Rule 13.09 (1) of the Listing Rules.                    
                                                                              
    DEFINITIONS                                                               
                                                                              
    "Board"   The board of Directors                                          
                                                                              
    "Company"   South East Group Limited, a company incorporated in           
    Bermuda with limited liability whose shares are listed on the             
    Stock Exchange                                                            
                                                                              
    "Directors"   The director(s) of the Company                              
                                                                              
    "FIE"   A foreign-invested enterprise to be formed by the                 
    Company in the PRC as its wholly owned subsidiary, directly               
    or indirectly, for the purpose of acquiring the Land for                  
    residential development                                                   
                                                                              
    "Group"   The Company and its subsidiaries                                
                                                                              
    "HK$"   Hong Kong dollars, the lawful currency of Hong Kong               
                                                                              
    "Hong Kong"   The Hong Kong Special Administrative Region of              
    the PRC                                                                   
                                                                              
    "Land"   A piece of land with a gross area of approximately 44,327        
    sq. m. situated at Zouping Economic Development Zone (*), Zouping County, 
    Shandong Province, the PRC for residential development purpose            
                                                                              
    "Listing Rules"   The Rules Governing the Listing of Securities           
    on the Stock Exchange                                                     
                                                                              
    "PRC"   The Peoples' Republic of China                                    
                                                                              
    "RMB"   Renminbi, the lawful currency of the PRC                          
                                                                              
    "Shareholders"   Holders of the ordinary shares of HK$0.10 each           
    in the issued capital of the Company                                      
                                                                              
    "sq. m."   Square metres                                                  
                                                                              
    "Stock Exchange"   The Stock Exchange of Hong Kong Limited                
                                                                              
    "Tender Deposit"   A deposit in the amount of RMB10,000,000               
    (equivalent to approximately HK$9,400,000) to be provided to              
    the Vendor on/before 3rd January 2005 as a security for                   
    submission of a tender for purchase of the Land                           
                                                                              
    "Vendor"   Zouping Bureau of Land and Resources                           
    (*), a government authority of Zouping County,                            
    Shandong Province, the PRC