10:12     LIPPO<00226> & LIPPO CHINA RES<00156> - Joint Ann. (12)             

    property valuers. The Directors are informed by the                       
    Auric Group that the entering into of the Tenancy                         
    Agreements upon completion of the Acquisitions would                      
    enable the acquired entities to conduct their                             
    respective businesses at the relevant premises at                         
    which such businesses are currently carried out and                       
    to avoid any disruption to their businesses after the                     
    Completion Date.                                                          
                                                                              
    Caps for the Tenancy Agreements:                                          
    The annual rentals payable under the Tenancy                              
    Agreements for each of the three years ending 31st                        
    December, 2006 are as follows (on the basis that the                      
    relevant Tenancy Agreements with Chun Yip Realty and                      
    Mr. Wong Senior are not renewed for a further three                       
    years and the relevant Tenancy Agreement with HSB is                      
    not renewed for a further two years):                                     
                                                                              
    For the year ended      For the year ending     For the year              
    ending                                                                    
    31st December, 2004     31st December, 2005     31st                      
    December, 2006                                                            
    ('000)  ('000)  ('000)                                                    
    (RM)    (RM)    (RM)                                                      
                                                                              
    Annual rentals  555     549     441                                       
    (equivalent to  (equivalent to  (equivalent to                            
    approximately HK$1,110) approximately HK$1,098)                           
            approximately HK$882)                                             
                                                                              
    The caps on the aggregate amounts payable by the Auric                    
    Group to the CYT Group in respect of the Tenancy                          
    Agreements over the three financial years ending 31st                     
    December, 2006, are proposed to be set on the basis                       
    of rentals payable in each year set out above with                        
    the relevant percentage ratios (as defined in the                         
    Listing Rules) as follows:                                                
                                                                              
    For the year ended      For the year ending     For the year              
    ending                                                                    
    Percentage ratios:      31st December, 2004     31st                      
    December, 2005  31st December, 2006                                       
    Lippo   LCR     Lippo   LCR     Lippo   LCR                               
                                                                              
    Assets ratio    0.01%   0.01%   0.01%   0.01%   0.01%   0.01%             
    Revenue ratio   0.06%   0.06%   0.06%   0.06%   0.05%   0.05%             
    Consideration ratio     0.14%   0.07%   0.14%   0.07%   0.11%             
            0.05%                                                             
                                                                              
    In the event that amounts payable by the Auric Group                      
    in respect of the Tenancy Agreements exceed the                           
    proposed caps in the relevant year as set out above                       
    or in case the Tenancy Agreements are renewed upon                        
    their expiry on 30th November, 2005 and 30th November,                    
    2006 (as the case may be), the transactions and the                       
    cap would be subject to review and Lippo and LCR shall                    
    comply with the relevant provisions of the Listing                        
    Rules (where applicable).                                                 
                                                                              
    Particulars of the Ongoing Arrangements:                                  
    Prior to Completion, the Auric Group (excluding ACY,                      
    APFP and Chunex which were acquired on the Completion                     
    Date) had participated in various trading                                 
    arrangements with the CYT Group from time to time.                        
    The Auric Group expects the relevant trading                              
    arrangements, as disclosed in the tables below, with                      
    the CYT Group, where applicable, to continue from time                    
    to time in accordance with market demands for the                         
    relevant products. Accordingly, the Ongoing                               
    Arrangements comprise of subsisting trading                               
    arrangements forming an enlarged distribution                             
    network for the products of the Auric Group between                       
    members of the Auric Group and the CYT Group on normal                    
    commercial terms (including