09:38     TAI PING CARPET<00146> - Announcement (3)                           

    to Messrs James S Dickson Leach, Nicholas T J Colfer and Ian D Boyce).    
                                                                              
    DEFINITIONS                                                               
                                                                              
    "Agreement"        the agreement entered into between CITPCL and SCHCL    
    dated 8 February 2005 relating to the supply of carpets and ancillary     
    services                                                                  
                                                                              
    "BTCL"        Bermuda Trust Company Limited                               
                                                                              
    "CITPCL"        Carpets International Thailand Public Company Limited, a  
    company incorporated in Thailand, 99% of the shares of which are owned    
    by the Company                                                            
                                                                              
    "Company"        Tai Ping Carpets International Limited, a company        
    incorporated in Bermuda with limited liability, the shares of which are   
    listed on the Main Board of the Stock Exchange (Stock Code: 146)          
                                                                              
    "Connected Transactions"        the connected transactions entered into   
    between the Tai Ping Group and the HSH Group for the provision of         
    carpets and ancillary services since 1 January 2005 including the         
    transaction to be carried out pursuant to the Agreement                   
                                                                              
    "HK$"        Hong Kong dollars, the lawful currency of the Hong Kong      
    Special Administrative Region of the People's Republic of China           
                                                                              
    "HSH"        The Hongkong and Shanghai Hotels, Limited, a company         
    incorporated in Hong Kong with limited liability, the shares of which     
    are listed on the Main Board of the Stock Exchange (Stock Code: 45)       
                                                                              
    "HSH Group"        HSH and its subsidiaries                               
                                                                              
    "Listing Rules"        The Rules Governing the Listing of Securities on   
    the Stock Exchange                                                        
                                                                              
    "SCHCL"        Siam Chaophraya Holdings Company Limited, a company        
    incorporated in Thailand, 75% of the shares of which are owned by HSH     
                                                                              
    "Stock Exchange"        The Stock Exchange of Hong Kong Limited           
                                                                              
    "Tai Ping Group"        the Company and its subsidiaries                  
                                                                              
    "Thai Baht"        Thai Baht the lawful currency of Thailand              
                                                                              
    "TPCL"        Tai Ping Carpets Limited, a wholly-owned subsidiary of the  
    Company                                                                   
                                                                              
                                                                              
                                                                              
    By Order of the Board                                                     
    Tai Ping Carpets International Limited                                    
    Ernest P.L. Law                                                           
    Company Secretary                                                         
                                                                              
    Hong Kong, 8 February 2005