10:06     LIPPO<00226> & LIPPO CHINA RES<00156> - Joint Ann. (2)              

      the Distribution Agreement and          Shareholding                    
    Date      and Rule 14A.14 of the                                          
      the Manufacturing Agreement             Listing Rules                   
                                                                              
    The Tenancy Agreements,         Completion Date to      Rule              
    14.23(1) of the Previous Rules                                            
      the Ongoing Arrangements and    31st December,                          
    2006      and Rule 14A.14 of the                                          
      the Consultancy Arrangements            Listing Rules                   
                                                                              
    The Chunex Arrangements constituted connected                             
    transactions under the Previous Rules by virtue of                        
    Chunex being an indirect non wholly-owned subsidiary                      
    of Lippo and LCR and the directorships in ACY, APFP                       
    and Chunex held by Mr. Sean Wong. Such transactions                       
    however ceased to constitute connected transactions                       
    on 31st March, 2004, being the date on which the                          
    Previous Rules ceased to be effective and Rule                            
    14A.11(5) of the Listing Rules came into effect                           
    resulting in Chunex no longer being a connected person                    
    of Lippo and LCR.                                                         
                                                                              
    Furthermore, the Trading Arrangements, the                                
    Distribution Agreement, the Manufacturing Agreement                       
    and the Continuing Transactions constituted                               
    continuing connected transactions under the Previous                      
    Rules and under Rule 14A.14 of the Listing Rules after                    
    Completion by virtue of the counterparties to the                         
    Trading Arrangements, the Distribution Agreement,                         
    the Manufacturing Agreement and the Continuing                            
    Transactions being associates of Mr. Wong Senior and                      
    Mr. Sean Wong (as applicable) under the Listing Rules                     
    as:                                                                       
                                                                              
    (i)     Mr. Wong Senior is the controlling shareholder                    
    of the Malaysian Vendors which after Completion until                     
    the Changed Shareholding Date, held the remaining 30                      
    per cent. of the total issued and paid up capital of                      
    ACY and APFP not acquired by the Auric Group under                        
    the Malaysian Agreement (although shareholders of                         
    Lippo and LCR should note that after the Changed                          
    Shareholding Date, the Malaysian Vendors'                                 
    shareholding interests in each of ACY and APFP has                        
    been reduced to 25 per cent. of their respective total                    
    issued share capital);                                                    
                                                                              
    (ii)    Chunex being an indirect non wholly-owned                         
    subsidiary of Lippo and LCR as Mr. Wong Senior                            
    continues to hold, after Completion and through SWIPL                     
    (a company of which Mr. Sean Wong, his son, is the                        
    trustee and a wholly-owned subsidiary of SFSB) the                        
    remaining 25 per cent. of the total issued and paid                       
    up capital of Chunex not acquired by the Auric Group                      
    under the Singaporean Agreement;                                          
                                                                              
    (iii)   Mr. Sean Wong was appointed a director of ACY,                    
    APFP and Chunex after Completion, and he in turn is                       
    the trustee of SWIPL which is interested in the                           
    remaining 25 per cent. of the total issued and paid                       
    up capital of Chunex;                                                     
                                                                              
    (iv)    ACY, APFP and Chunex therefore became indirect                    
    non-wholly owned subsidiaries of Lippo and LCR after                      
    Completion;                                                               
                                                                              
    (v)     SFSB, Chun Yip Realty, HSB and CYBM are                           
    subsidiaries of CYT and are therefore associates of                       
    Mr. Wong Senior;                                                          
                                                                              
    (vi)    Mr. Sean Wong is the controlling shareholder of                   
    CTC and Mr. Wong Senior owns 3.2 per cent. of CTC.                        
    CTC and Mr. Wong Senior are interested in 27 per cent.                    
    and 15.65 per cent. of the issued and paid up share                       
    capital of KPL respectively which therefore                               
    constitutes an associate of Mr. Sean Wong;