09:19     GEELY AUTO<00175> - Announcement                                    

    The Stock Exchange of Hong Kong Limited takes no responsibility for the   
    contents of this announcement, makes no representation as to its          
    accuracy or completeness and expressly disclaims any liability            
    whatsoever for any loss howsoever arising from or in reliance upon the    
    whole or any part of the contents of this announcement.                   
                                                                              
    GEELY AUTOMOBILE HOLDINGS LIMITED                                         
    (Incorporated in the Cayman Island with limited liability)                
    (Stock Code: 175)                                                         
                                                                              
    PROGRESS ANNOUNCEMENT                                                     
    POSSIBLE ACQUISITION OF ALL THE SHARES IN THE                             
    CONTROLLING SHAREHOLDER BY GEELY GROUP LIMITED                            
                                                                              
    Reference is made to the announcement of the Company dated 11 January     
    2005 (the "First Announcement") regarding the Possible Acquisition.       
    Terms used herein shall have the same meanings as defined in the First    
    Announcement.                                                             
                                                                              
    The Company has updated with Proper Glory, the controlling shareholder    
    of the Company, and has been advised by Proper Glory that further to the  
    publication of the First Announcement, although negotiations are still    
    continuing between the shareholders of Proper Glory and Geely Group, the  
    material terms of the Possible Acquisition have yet to be agreed upon,    
    and thus no definite timetable has been fixed for the Possible            
    Acquisition.                                                              
                                                                              
    As the Possible Acquisition may or may not take place, shareholders of    
    the Company and public investors are advised to exercise extreme caution  
    when dealing in the shares of the Company.                                
                                                                              
    The directors of the Company will keep the market informed by way of      
    announcement as and when they have been notified of any significant       
    progress of the Possible Acquisition in compliance with the Rules         
    Governing the Listing of Securities on The Stock Exchange of Hong Kong    
    Limited and the Hong Kong Code on Takeovers and Mergers.                  
                                                                              
    As at the date of this announcement, Mr. He Xuechu, Mr. Xu Xing Yao, Mr.  
    Ang Siu Lun, Lawrence, Mr. Zhou Teng, Mr. Ku Wai Kwan, Mr. Nan Yang, Mr.  
    Zhang Zhe and Mr. Wong Hing Kwok are the executive directors of the       
    Company and Mr. Lee Cheuk Yin, Dannis, Mr. Song Lin and Mr. Liu Ming Hui  
    are the independent non-executive directors of the Company.               
                                                                              
    By Order of the Board of                                                  
    Geely Automobile Holdings Limited                                         
    He Xuechu                                                                 
    Chairman                                                                  
                                                                              
    Hong Kong, 7 February 2005                                                
                                                                              
    The directors of the Company jointly and severally accept full            
    responsibility for the accuracy of the information contained in this      
    announcement (other than those relating to Proper Glory) and confirm,     
    having made all reasonable inquiries, that to the best of their           
    knowledge, opinions expressed in this announcement have been arrived at   
    after due and careful consideration and there are no other facts not      
    contained in this announcement, the omission of which would make any      
    statement in this announcement misleading.                                
                                                                              
    The directors of Proper Glory jointly and severally accept full           
    responsibility for the accuracy of the information contained in this      
    announcement and confirm, having made all reasonable inquiries, that to   
    the best of their knowledge, opinions expressed in this announcement      
    have been arrived at after due and careful consideration and there are    
    no other facts not contained in this announcement, the omission of which  
    would make any statement in this announcement misleading.