09:27     LIPPO CHINA RES<00156> & HK CHINESE LTD<00655>-Joint Ann (4)        

    The aggregate rentals payable under each of the                           
    Tenancy Agreements per annum, represents less than                        
    2.5 per cent. of each of the applicable percentage                        
    ratios (as defined in the Listing Rules) for each of                      
    LCR and HCL (as applicable) on an annual basis.                           
    Accordingly, whilst the Tenancy Agreements are                            
    subject to reporting and announcement requirements                        
    under Rule 14A.34 of the Listing Rules, no approval                       
    of independent shareholders of any of LCR or HCL will                     
    be required.                                                              
                                                                              
    Details of the Tenancy Agreement will be disclosed                        
    in the annual reports of each of LCR and HCL for each                     
    of the relevant financial years in accordance with                        
    Rules 14A.45 and 14A.46 of the Listing Rules and each                     
    of LCR and HCL will comply with the requirements of                       
    Rules 14A.37 to 14A.40 of the Listing Rules in respect                    
    of the Tenancy Agreements for each of the relevant                        
    financial years.                                                          
                                                                              
    Pursuant to Rule 14A.36 of the Listing Rules, in the                      
    event that the terms of any of the Tenancy Agreements                     
    are materially altered or any of LCR or HCL enters                        
    into any new tenancy agreement in respect of the                          
    respective Superform Premises and/or LS Premises (as                      
    applicable) in the future, the relevant company will                      
    comply with the relevant provisions of the Listing                        
    Rules at the time.                                                        
                                                                              
    REASONS FOR THE TENANCY AGREEMENTS                                        
                                                                              
    Reference is made to the announcement dated 16th                          
    December, 2002 issued by, inter alia, LCR and HCL in                      
    respect of (amongst others) tenancy agreements                            
    relating to each of the Superform Premises and the                        
    LS Premises which were entered into between the same                      
    parties as the respective landlords and tenants on                        
    16th December, 2002 for monthly rentals of HK$176,448                     
    and HK$192,608 respectively and the terms of which                        
    expired and shall expire (as the case may be) on 31st                     
    December, 2004 and 17th January, 2005 respectively.                       
                                                                              
    The Tenancy Agreements were entered into by the                           
    respective parties to enable each of Lippo and Lippo                      
    Securities to continue the use of the Superform                           
    Premises and the LS Premises respectively for the sake                    
    of convenience and taking into account of each                            
    relevant company's practical needs for such premises                      
    and after making reference to market rents of similar                     
    premises in proximity. The increase in the monthly                        
    rentals under the new Tenancy Agreements reflect the                      
    prevailing market conditions at the time of                               
    negotiations of such agreements and to permit the                         
    relevant tenants with continued use of the relevant                       
    premises and continue their existing operations                           
    without disruption.                                                       
                                                                              
    The respective boards of directors of LCR and HCL,                        
    including their respective independent non-executive                      
    directors, consider the terms of the Tenancy                              
    Agreements (as relevant to each of them) have been                        
    negotiated and arrived at on arms length basis and                        
    on normal commercial terms, in line with, and with                        
    reference to, prevailing market letting terms and                         
    conditions (as confirmed by Chesterton Petty Limited,                     
    independent property valuers, as at 31st December,                        
    2004) and that such terms are in the interest of LCR                      
    and HCL (as the case may be) and fair and reasonable                      
    so far as their respective shareholders are                               
    concerned.                                                                
                                                                              
    INFORMATION ON EACH PARTY OF THE TENANCY AGREEMENTS                       
                                                                              
    The principal activity of each of Lippo and LCR is