09:26     LIPPO CHINA RES<00156> & HK CHINESE LTD<00655>-Joint Ann (3)        

    control the exercise of, 10 per cent. or more of the                      
    voting power at the general meeting of LCR other than                     
    through Lippo's shareholding interest in LCR.                             
                                                                              
    2.      Tenancy Agreement between Lippo Securities and                    
    Prime Power                                                               
                                                                              
    Principal terms:                                                          
                                                                              
    Tenant: Lippo Securities Holdings Limited ("Lippo                         
    Securities")                                                              
                                                                              
    Landlord:       Prime Power Investment Limited ("Prime                    
    Power")                                                                   
                                                                              
    Date of tenancy         10th January, 2005                                
      agreement:                                                              
                                                                              
    Premises:       Rooms 2302-2306 of 23rd Floor, Tower One,                 
    Lippo Centre, 89 Queensway, Hong Kong with a gross                        
    floor area of approximately 12,038 square feet, to                        
    be used as office space (the "LS Premises")                               
                                                                              
    Term:   Two years commencing from 18th January, 2005 to                   
    17th January, 2007, both days inclusive                                   
                                                                              
    Rental: HK$263,600 per month (equivalent                                  
    HK$3,163,200 per annum), exclusive of rates, service                      
    charges and all other outgoings                                           
                                                                              
    The aggregate rentals payable under the tenancy                           
    agreement entered into between Lippo Securities and                       
    Prime Power (the "LS Tenancy Agreement") for each of                      
    the three financial years ending 31st December, 2007                      
    are as follows:                                                           
                                                                              
    for the financial               for the financial               for       
    the financial                                                             
    year ending             year ending             year ending               
    31st December,          31st December,          31st                      
    December,                                                                 
    2005            2006            2007                                      
    HK$             HK$             HK$                                       
                                                                              
    Estimated annual rental 3,018,645               3,163,200                 
            144,555                                                           
                                                                              
    Listing Rules implications:                                               
                                                                              
    Lippo Securities is a wholly-owned subsidiary of HCL,                     
    and Prime Power is a wholly-owned subsidiary of LCR,                      
    which in turn is the controlling shareholder of HCL                       
    as to approximately 72.26 per cent. of HCL's entire                       
    issued share capital as at the date of this                               
    announcement, with Prime Power therefore                                  
    constituting a connected person of HCL under the                          
    Listing Rules. Accordingly, the LS Tenancy Agreement                      
    constitutes a continuing connected transaction for                        
    HCL under Chapter 14A of the Listing Rules.                               
                                                                              
    The LS Tenancy Agreement does not constitute a                            
    connected transaction for Lippo or LCR under the                          
    exemption set out in Rule 14A.31(1) of the Listing                        
    Rules as no connected person (as defined under the                        
    Listing Rules) of Lippo or LCR, as the case may be,                       
    (other than at the level of its subsidiaries) is                          
    entitled to exercise, or control the exercise of, 10                      
    per cent. or more of the voting power at general                          
    meetings of LCR or HCL respectively, other than                           
    through Lippo's shareholding interest in LCR or LCR's                     
    shareholding interest in HCL.                                             
                                                                              
    LISTING RULES IMPLICATIONS