09:48     LUK FOOK HOLD<00590> - Announcement (1)                             

    The Stock Exchange of Hong Kong Limited takes no                          
    responsibility for the contents of this announcement,                     
    makes no representation as to its accuracy or                             
    completeness and expressly disclaims any liability                        
    whatsoever for any loss howsoever arising from or in                      
    reliance upon the whole or any part of the contents                       
    of this announcement.                                                     
                                                                              
    LUK FOOK HOLDINGS (INTERNATIONAL) LIMITED                                 
    (Incorporated in Bermuda with limited liability)                          
    (Stock Code: 590)                                                         
                                                                              
    CONNECTED TRANSACTION                                                     
                                                                              
    On 13th January 2005 Luk Fook HK entered into the                         
    Tenancy Agreement with Mr. Wong for leasing the                           
    Property, as a renewal of an existing tenancy                             
    agreement expired on 31st December 2004.                                  
                                                                              
    The Directors (including the independent                                  
    non-executive directors of the Company) are of the                        
    view that the Tenancy Agreement is on normal                              
    commercial terms entered into on arm's length basis,                      
    in the ordinary and usual course of business of the                       
    Group, and fair and reasonable so far as the                              
    independent shareholders of the Company are concerned.                    
    It is in the interest of the Group to enter into the                      
    transaction.                                                              
                                                                              
    The entering into of the Tenancy Agreement                                
    constitutes a connected transaction for the Company                       
    which is of de minimis nature under Rule 14A.34 of                        
    the Listing Rules. For compliance with the Listing                        
    Rules, the Company is required to make this                               
    announcement and disclosure in annual reports and                         
    accounts.                                                                 
                                                                              
    TENANCY AGREEMENT                                                         
    The principal terms of the Tenancy Agreement, which                       
    are same as that of the existing tenancy save the                         
    designated dates and rental, are as follows:                              
                                                                              
    Dated:  13th January 2005                                                 
                                                                              
    Tenant: Luk Fook Jewellery & Goldsmith (HK) Company                       
    Limited ("Luk Fook HK"), a company incorporated in                        
    Hong Kong and wholly owned by Luk Fook Holdings                           
    (International) Limited (the "Company").                                  
                                                                              
    Landlord:       Mr. Wong Kwai Sang ("Mr. Wong"), father                   
    of the Company's Chairman & Chief Executive.                              
                                                                              
    Property:       Portion A-1 on Ground Floor, On Lee                       
    Building, Nos. 41-53 Fung Tak Road and Nos. 9-15 Fei                      
    Fung Street, Wong Tai Sin, Kowloon, Hong Kong (the                        
    "Property").                                                              
                                                                              
    Saleable Area:  Approximately 925 square feet.                            
                                                                              
    Cash Rental:    HK$150,000 per month, payable in cash                     
    at the beginning of the month, exclusive of rates,                        
    management fees and other outgoings. The annual                           
    rental for the Property amounts to HK$1,800,000.                          
                                                                              
    Term:   One year from 1st January 2005 to 31st December                   
    2005.                                                                     
                                                                              
    The monthly rental includes a premium of HK$20,000                        
    over the valuation of HK$130,000, as at 16th December                     
    2004, determined with reference to the open market                        
    rent as valued by FPDSavills (Hong Kong) Limited, an                      
    independent valuer who is not connected with any of                       
    the directors, substantial shareholders