10:09     EMPEROR IHL<02954> - Announcement & Resumption (3)                  

    Completion                                                                
    Completion of the Subscription will take place on or                      
    before 19th January 2005, being 14 days from the date                     
    of the Placing Agreement. Under Rule 14A.31(3)(d) of                      
    the Listing Rules, completion of the Subscription is                      
    required to take place within 14 days after the date                      
    of the Placing Agreement; otherwise Shareholders'                         
    approval would be required for the Subscription. The                      
    Directors expect that the Placing and the Subscription                    
    will not result in less than 25% of the enlarged issued                   
    share capital of the Company in public hands.                             
                                                                              
    Application for listing                                                   
    Application will be made by the Company to the Listing                    
    Committee of the Stock Exchange for granting of the                       
    listing of, and permission to deal in, the new Shares                     
    of the Subscription.                                                      
                                                                              
    REASON FOR THE PLACING AND SUBSCRIPTION                                   
    The Company is an investment company and its                              
    subsidiaries are principally engaged in property                          
    investment and development in Hong Kong, securities                       
    brokerage and provision of financial services,                            
    furniture retailing, hotel operation and publishing                       
    and printing. In view of the current market condition,                    
    the Directors consider the Placing and Subscription                       
    to be a good opportunity to raise capital for the                         
    Company. The Placing and Subscription will enable the                     
    Company to broaden its shareholders' base and                             
    strengthen the financial position of the Company. The                     
    Directors considered that the terms of the Placing                        
    and the Subscription were fair and reasonable and they                    
    were in the interests of the Company and its                              
    Shareholders as a whole. No fund raising exercise were                    
    carried out during the twelve months period                               
    immediately preceding the date of this announcement.                      
                                                                              
    EFFECT ON SHAREHOLDING                                                    
    The effect on the shareholding structure of the                           
    Company pursuant to the Placing and the Subscription                      
    is set out as follows:                                                    
                                                                              
    Immediately before the Placing and the Subscription                       
    Immediately after completion of the Placing but before                    
    the completion of the Subscription                                        
    Immediately after completion of the Placing and the                       
    Subscription                                                              
    Number of Shares (%)   Number of Shares (%)                               
    Number of Shares (%)                                                      
                                                                              
    Charron   645,674,750   516,184,750   645,674,750                         
    (74.79%)   (59.79%)   (65.04%)                                            
                                                                              
    Placees   0   129,490,000   129,490,000                                   
    (0%)   (15.00%)   (13.04%)                                                
                                                                              
    Other public Shareholders   217,618,770                                   
    217,618,770   217,618,770                                                 
    (25.21%)   (25.21%)   (21.92%)                                            
                                                                              
    Total   863,293,520   863,293,520   992,783,520                           
    (100%)   (100%)   (100%)                                                  
                                                                              
    GENERAL MANDATES                                                          
    Since the issue of Subscription Shares utilize most                       
    of the Issue Mandate granted to the Directors at the                      
    annual general meeting held on 26th August 2004, the                      
    Directors will convene the SGM to seek approval of                        
    the Independent Shareholders and Shareholders (as the                     
    case may be) for the refreshment of the Issue Mandate                     
    and the Repurchase Mandate to issue further securities                    
    and to repurchase securities not exceeding 20% and                        
    10% respectively of the issued share capital of the                       
    Company as at the date of passing such resolutions.                       
                                                                              
    An Independent Board Committee will be formed to                          
    advise the Independent Shareholders as to the                             
    refreshment of the Issue Mandate. An independent                          
    financial adviser will be appointed to advise the                         
    Independent Board Committee and the Independent                           
    Shareholders in this regard.                                              
                                                                              
    A circular containing the details of the refreshment                      
    of the General Mandates, the letter from the                              
    Independent Board Committee and the advice from the                       
    independent financial adviser together with a notice                      
    convening the SGM to approve the refreshment of the                       
    General Mandates will be despatched to Shareholders                       
    as soon as possible.