09:57     KERRY PPT<00683> - Announcement (3)                                 

    that is to say, within three months from receipt of all relevant          
    supporting documents by the auditors of Kerry Logistics. Adjustments,     
    if any, to the Consideration, will be deducted from the distributable     
    profits of the Eas PRC Group before the First Closing that Huatong is     
    entitled to receive and any shortfall amount will be payable by Huatong   
    in cash within 30 days after written demand. In addition, the waiver is   
    on terms that Eas PRC be compensated by Huatong for any related           
    economic loss that Eas PRC may suffer on account of Second Closing        
    Condition III not having been satisfied. Kerry Logistics is not aware     
    of any reasons as a result of which the NAV Statement cannot be           
    prepared.                                                                 
                                                                              
    The Company considers that the waivers granted in respect of the          
    relevant Second Closing Conditions as aforementioned to enable Second     
    Closing to take place are in its interest and that such waivers do not    
    have any material adverse implications in the context of the              
    Acquisition taking into account the indemnities from Huatong mentioned    
    above.                                                                    
                                                                              
    As a result of Second Closing and upon concluding the registration        
    procedures with the relevant PRC industry and commerce registration       
    authority, the Company will indirectly hold 70% of Eas PRC and the        
    remaining 30% will be held by Huatong.                                    
                                                                              
    The Company has also decided to consolidate Eas PRC as its subsidiary     
    with effect from the First Closing i.e. 31 December 2004. This is         
    because the Second Closing has already taken place (meaning that the      
    First Closing will not be unwound) and with effect from the First         
    Closing, Kerry Logistics has acquired management control over the board   
    of Eas PRC as Eas HK, a wholly-owned subsidiary of Kerry Logistics        
    after the First Closing, is entitled to nominate three directors to the   
    board of Eas PRC whereas Huatong is only entitled to nominate two         
    directors.                                                                
                                                                              
    GENERAL                                                                   
                                                                              
    As at the date of this announcement, Messrs. Ang Keng Lam, Wong Siu       
    Kong, Ho Shut Kan and Ma Wing Kai, William are executive Directors and    
    Messrs. William Winship Flanz, Lau Ling Fai, Herald and Christopher       
    Roger Moss, O.B.E. are independent non-executive Directors.               
                                                                              
    By Order of the Board                                                     
    Ang Keng Lam                                                              
    Chairman                                                                  
                                                                              
    Hong Kong, 21 January 2005                                                
                                                                              
    *  For identification purpose only