10:03     ROAD KING INFRA<01098> - Announcement (1)                           

    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.               
                                                                              
                                                                              
    ROAD KING INFRASTRUCTURE LIMITED                                          
    (Incorporated in Bermuda with limited liability)                          
    (Stock Code: 1098)                                                        
                                                                              
    DISCLOSEABLE TRANSACTION                                                  
    ACQUISITION OF LAND USE RIGHT                                             
                                                                              
    The Company has successfully secured through auction the right            
    to acquire the land use rights on the Lands, and has received the         
    Confirmation from the Authority on 6 February 2005 in relation to the     
    Acquisition. It expects to sign the land grant contracts for the          
    Lands before the end of February 2005.                                    
                                                                              
    The Acquisition constitutes a discloseable transaction of the             
    Company under Rule 14.06(2) of the Listing Rules. A circular              
    containing, among other things, details of the Acquisition will be        
    despatched to the Shareholders as soon as practicable.                    
                                                                              
                                                                              
    The Directors are pleased to announce that the Company has                
    successfully secured through auction the right to acquire the land        
    use rights on the Lands, and has received the Confirmation from the       
    Authority on 6 February 2005 in relation to the Acquisition.              
                                                                              
    PARTIES TO THE CONFIRMATION                                               
    (1)                                                                       
    The Company, as the successful bidder for the Lands; and                  
    (2)                                                                       
    The Authority, a PRC local government authority in charge of              
    state-owned land resources, and the grantor of land use rights.           
                                                                              
    To the best of the Directors' knowledge, information and belief           
    having made all reasonable enquiries, the Authority is an Independent     
    Third Party.                                                              
                                                                              
    DETAILS OF THE ACQUISITION                                                
                                                                              
    The Company has agreed to purchase and the Authority has agreed to        
    sell the land use rights on the Lands with total site area of             
    approximately 487,000m2 for residential development and related           
    ancillary facilities.                                                     
                                                                              
    The residential portion of both pieces of land have a tenor for 70        
    years from the actual delivery of the Lands.                              
                                                                              
    It is expected that the land grant contracts for the Lands will be        
    signed before the end of February 2005 between a wholly-owned             
    subsidiary of the Company and the Authority.                              
                                                                              
    CONSIDERATION                                                             
                                                                              
    The Total Consideration payable in respect of the Acquisition is          
    approximately RMB700 million (approximately HK$660 million). The          
    Total Consideration will be funded by internal resources of the           
    Group.                                                                    
                                                                              
    The Company has paid a deposit of RMB330 million and will pay a           
    further RMB160 million making up to 70% of the Total Consideration        
    before the end of April 2005. Remaining balance will be fully made        
    upon delivery of all the land use rights on the Lands which is            
    expected to be before 31 December 2006.                                   
                                                                              
    The Acquisition is on an arm's length basis with normal commercial        
    terms. In particular, Lands are being acquired through auction            
    process and the Total Consideration represented a competitive bid         
    offered for the Lands. After having taken into consideration the          
    recent sale price for land in the vicinity, the Directors consider        
    that the terms of the Acquisition are fair and reasonable and are in      
    the interests of the Shareholders as a whole.                             
                                                                              
    REASONS FOR AND BENEFITS OF THE TRANSACTION                               
                                                                              
    The Company is an investment holding company and its subsidiaries         
    are principally engaged in the investment in, development, operation      
    and management of toll roads and expressways in the PRC. As stated in     
    the Company's 2004 interim report, the Group believes that the PRC is     
    a market with ample business and development opportunities. Apart         
    from the development opportunities for toll road business in the PRC,     
    the property market is also an area with great development potential      
    in the long run. Apart from the Company's property development            
    project in Guangzhou announced on 20 October 2004, the Group              
    continues to look for opportunities to further broaden its business       
    activities and is cautiously studying the property development            
    projects in the PRC. The Directors consider that the two pieces of        
    land are good for development as they are located at a prime area,        
    easily accessible and situated at the new town center of Wujin