09:51     SHELL ELECTRIC<00081> - Announcement (5)                            

    LISTING RULES IMPLICATION                                                 
                                                                              
    The Acquisition constitutes a discloseable                                
    transaction of the Company under the Listing Rules                        
    and the Loan constitutes an advance to an entity which                    
    exceeds 8% of the market capitalisation of the Company                    
    in accordance with Rule 13.13 of the Listing Rules.                       
    Accordingly, the Acquisition and the Loan are subject                     
    to the disclosure requirements under the Listing                          
    Rules. A circular containing further information on                       
    the Acquisition and other relevant information will                       
    be despatched to the Shareholders for their                               
    information as soon as possible.                                          
                                                                              
    DEFINITIONS                                                               
                                                                              
    In this announcement, the following expressions have                      
    the meanings set out below unless the context requires                    
    otherwise:                                                                
                                                                              
    "Acquisition"   the acquisition of the Sale Shares by                     
    Allright Investments from the Vendor pursuant to the                      
    terms and conditions of the Acquisition Agreement                         
                                                                              
    "Acquisition Agreement" the sale and purchase                             
    agreement dated 7 January 2005 entered into between                       
    the Purchasers, the Vendor and the Warrantor                              
                                                                              
    "Allright Investments"  Allright Investments Limited,                     
    a company incorporated in Samoa and an indirect                           
    wholly-owned subsidiary of the Company                                    
                                                                              
    "associate(s)"  has the meaning ascribed to it under                      
    the Listing Rules                                                         
                                                                              
    "Board" the board of Directors                                            
                                                                              
    "Business Day"  a day, excluding Saturday, on which                       
    banks are open for business in Hong Kong                                  
                                                                              
    "Company"       Shell Electric MFG. (Holdings) Company                    
    Limited (*), a company                                                    
    incorporated in Hong Kong with limited liability, the                     
    Shares of which are listed on the Stock Exchange                          
                                                                              
    "Completion"    completion of the sale and purchase of                    
    the Sale Shares                                                           
                                                                              
    "Completion Date"       the third Business Day after the                  
    Longstop Date                                                             
                                                                              
    "connected person(s)"   has the meaning ascribed to it                    
    under the Listing Rules                                                   
                                                                              
    "Consideration" the consideration for the Sale                            
    Shares in the amount of HK$3,814,400 payable by                           
    Allright Investments pursuant to the Acquisition                          
    Agreement                                                                 
                                                                              
    "Directors"     the directors of the Company                              
                                                                              
    "Group" the Company and its subsidiaries                                  
                                                                              
    "Hong Kong"     the Hong Kong Special Administrative                      
    Region of the PRC                                                         
                                                                              
    "Listing Rules" the Rules Governing the Listing of                        
    Securities on the Stock Exchange                                          
                                                                              
    "Loan"  a loan in the sum of HK$60 million advanced                       
    by Allright Investments to Yue Tian pursuant to the                       
    Loan Agreement