09:53     COFCO INTL<00506> - Announcement (3)                                

    (iv)    the aggregate rentals and management fees payable to COFCO        
    Plaza Company for the period from 1st January, 2005 to 31st               
    December, 2005 will be RMB5,834,488.50 (or about                          
    HK$5,504,234.00); and                                                     
                                                                              
    (v)     the rentals and management fees are payable on the first day      
    after each three months period commencing on 1st January, 2005            
    and are exclusive of other public utilities charges.                      
                                                                              
    2.      Supplemental Agreement dated 19th January, 2005 ("Supplement      
    Agreement 2") between COFCO Plaza Company and COFCO Wines Company         
    to revise certain terms of Agreement 2 to the effect that:-               
                                                                              
    (i)     the period of tenancy will be extended until 31st December,       
    2005;                                                                     
                                                                              
    (ii)    the gross floor area of the Premises rented has been              
    increased from about 329.46 square metres to about 405.79 square          
    metres with effect from 1st July, 2004;                                   
                                                                              
    (iii)   accordingly, the aggregate rentals and management fees            
    payable to COFCO Plaza Company for the period from 1st January,           
    2004 to 31st December, 2004 has been adjusted from                        
    RMB1,202,529.00 (or about HK$1,134,461.00) to RMB1,341,831.25             
    (or about HK$1,265,879.00). The additional rentals and                    
    management fees amounting to RMB139,302.25 (or about                      
    HK$131,418.00) will be paid in the first quarter of 2005 as the           
    rentals and management fees for the use of additional 76.33               
    square metres during the period from 1st July, 2004 to 31st               
    December, 2004;                                                           
                                                                              
    (iv)    the aggregate rentals and management fees payable to COFCO        
    Plaza Company for the period from 1st January, 2005 to 31st               
    December, 2005 will be RMB1,481,133.50 (or about                          
    HK$1,397,296.00); and                                                     
                                                                              
    (v)     the rentals and management fees are payable on the first day      
    after each three months period commencing on 1st January, 2005            
    and are exclusive of other public utilities charges.                      
                                                                              
    Save for the amendments set out in Supplement Agreement 1 and             
    Supplement Agreement 2 respectively, other terms and conditions           
    contained in Agreement 1 and Agreement 2 respectively shall               
    remain in full force and effect.                                          
                                                                              
    THE CAP AMOUNT                                                            
                                                                              
    The aggregate rentals and management fees payable under                   
    Agreement 1, Agreement 2 (collectively "Tenancy Agreements")              
    and Supplemental Agreement 1 and Supplemental Agreement 2                 
    (collectively "Supplemental Agreements") for the financial year           
    ending 31st December, 2005 are subject to the cap amount of               
    RMB7,980,478.63 (or about HK$7,528,755.00)                                
                                                                              
    The cap amount is determined with reference to the agreed rentals         
    and management fees to be paid under the Tenancy Agreements and           
    Supplement Agreements. The directors of the Company (including            
    the independent non-executive directors) consider that the                
    rentals and management fees payable in respect of the Tenancy             
    Agreements and Supplemental Agreements to be fair and reasonable          
    and comparable with the general market rentals and management             
    fees of office premises of similar grade in the vicinity of COFCO         
    Plaza in Beijing.                                                         
                                                                              
    REASONS FOR ENTERING INTO THE TENANCY AGREEMENTS AND THE                  
    SUPPLEMENTAL AGREEMENTS                                                   
                                                                              
    The Premises rented under the Tenancy Agreements were used as             
    the offices of the Company and its subsidiaries