09:14     CHINA EB LTD<00165> - 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.                                                     
                                                                              
    CHINA EVERBRIGHT LIMITED                                                  
    (Incorporated in Hong Kong with limited liability)                        
    (the "Company")                                                           
    (Stock Code: 165)                                                         
                                                                              
    CONTINUING CONNECTED TRANSACTION:                                         
    LEASING OF PROPERTY FROM CONNECTED PERSON                                 
                                                                              
    A wholly-owned subsidiary of the Company as tenant,                       
    has entered into a tenancy agreement with a                               
    wholly-owned subsidiary of CEH as landlord on 8th                         
    January, 2005.                                                            
                                                                              
    The tenancy agreement constitutes a continuing                            
    connected transaction under Rule 14A.34 of the                            
    Listing Rules and the Company is subject to the                           
    reporting, announcement and annual review                                 
    requirements under Chapter 14A of the Listing Rules.                      
                                                                              
    THE TENANCY                                                               
    A wholly-owned subsidiary of the Company as tenant,                       
    has entered into a tenancy agreement (the "Tenancy")                      
    with a wholly-owned subsidiary of China Everbright                        
    Holdings Company Limited ("CEH") as landlord on 8th                       
    January, 2005.                                                            
                                                                              
    The terms of the Tenancy were arrived at through arm's                    
    length negotiation between the Company and CEH and                        
    took into account the professional valuations on the                      
    open market rental value of the property, being                           
    HK$220,000 and HK$243,000 respectively prepared on                        
    2nd December, and 30th December, 2004 by Jointgoal                        
    Surveyors Limited and Messrs Chung, Chan & Associates                     
    who were appointed by the Company and CEH                                 
    respectively.                                                             
                                                                              
    As previously disclosed in the announcement dated                         
    27th January, 2003, the Company has been using the                        
    property as part of its office under a lease which                        
    expired on 31st December, 2004, the entering into the                     
    Tenancy will allow the Company to continue using the                      
    property as its office and will minimize unnecessary                      
    removal and refitting costs. The Directors of the                         
    Company, including the independent non-executive                          
    directors, are of the opinion that the terms of the                       
    Tenancy are on normal commercial terms and in ordinary                    
    and usual course of business of the Company. The                          
    Directors, including the independent non-executive                        
    directors, are of the view that the terms of the                          
    tenancy are fair and reasonable and in the interests                      
    of the Company and its shareholders as a whole.                           
                                                                              
                                                                              
    As CEH is a substantial shareholder of the Company,                       
    holding approximately 55.46% of the entire issued                         
    share capital of the Company, CEH and its wholly-owned                    
    subsidiaries are connected persons of the Company.                        
    The Tenancy constitutes a continuing connected                            
    transaction for the Company under the Listing Rules.                      
    As each of the applicable ratios on an annual basis                       
    is less than 2.5%, by virtue of Rule 14A.34 of the                        
    Listing Rules, no independent shareholders' approval                      
    is required. The Company is subject to the reporting,                     
    announcement and annual