10:15     K. WAH INT'L<00173> - Announcement (7)                              

                                   venture contract dated 31st                
                                   January 2005 entered into                  
                                   between the Joint Venture                  
                                   Parties in relation to, among              
                                   other things, the increase in              
                                   registered capital of the PRC              
                                   Company and the                            
                                   transformation of the PRC                  
                                   Company into and the                       
                                   establishment of the Joint                 
                                   Venture Company                            
    `Joint Venture Parties'        Shanghai Baosteel Group                    
                                   Corporation, the Company,                  
                                   Mitsubishi and Tokyu                       
    `KWCM'                         K. Wah Construction Materials              
                                   Limited, a company                         
                                   incorporated in Hong Kong                  
                                   with limited liability, the                
                                   shares of which are listed on              
                                   the main board of the Stock                
                                   Exchange and an indirect                   
                                   65.8% owned subsidiary of the              
                                   Company                                    
    `Listing Rules'                Rules Governing the Listing                
                                   of Securities on the Stock                 
                                   Exchange (as amended from                  
                                   time to time)                              
    `Mitsubishi'                   Mitsubishi Corporation , a                 
                                   company incorporated in Japan              
                                   and listed on Tokyo Stock                  
                                   Exchange                                   
    `PRC'                          the People's Republic of                   
                                   China                                      
    `PRC Company'                  Shanghai Baosteelland Co.,                 
                                   Ltd , a state-owned limited                
                                   company and wholly-owned by                
                                   Shanghai Baosteel Group                    
                                   Corporation immediately prior              
                                   to the entering of the Joint               
                                   Venture Contract, Capital                  
                                   Increase Agreement and the                 
                                   Articles of Association,                   
                                   which will be transformed                  
                                   into the Joint Venture                     
                                   Company pursuant to the Joint              
                                   Venture Contract, the Capital              
                                   Increase Agreement and the                 
                                   Articles of Association. It                
                                   was incorporated on 17th                   
                                   February 1993 in Shanghai,                 
                                   the PRC under the name of                  
                                   Shanghai Baosteel Real Estate              
                                   Operation and Development                  
                                   Company  and the name of                   
                                   which was changed to Shanghai              
                                   Baosteelland Co., Ltd.  on                 
                                   1st July 2002.  It is an                   
                                   investment holding company                 
                                   and is principally engaged in              
                                   the business of property                   
                                   development and investment in              
                                   the PRC.                                   
    `RMB'                          Renminbi, the lawful currency              
                                   of PRC                                     
    `Shanghai Baosteel Group       Shanghai Baosteel Group                    
    Corporation'                   Company , a state-owned                    
                                   corporation incorporated in                
                                   the PRC and the sole                       
                                   shareholder of the PRC                     
                                   Company as at the date of                  
                                   this announcement                          
    `Shareholder(s)'               the shareholder(s) of the                  
                                   Company                                    
    `Stock Exchange'               The Stock Exchange of Hong                 
                                   Kong Limited                               
    `Tokyu'                        Tokyu Land Corporation , a                 
                                   company incorporated in Japan              
                                   and listed on Tokyo Stock                  
                                   Exchange                                   
    `Transaction'                  the transaction under the                  
                                   Joint Venture Contract, the                
                                   Capital Increase Agreement                 
                                   and the Articles of                        
                                   Association                                
                                                                              
    For the purpose of this announcement,                                     
    (1)                                                                       
    the exchange rate of RMB1.05=HK$1 has been used; and                      
    (2)                                                                       
    certain English translations of Chinese names or words in this            
    announcement are included for information purpose only, and should