09:34     STONE HOLDINGS<00409> - 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.                                                     
                                                                              
    STONE GROUP HOLDINGS LIMITED                                              
    *                                                                         
    (Incorporated in Hong Kong with limited liability)                        
    (Stock Code: 409)                                                         
                                                                              
    POSSIBLE MAJOR TRANSACTION                                                
                                                                              
    The Directors announce that the Group has since                           
    February 2003 made numerous on-market disposals of                        
    part of its holding of SINA Shares, which are listed                      
    on NASDAQ, via third party brokers. As at the date                        
    of this announcement, the Group holds an aggregate                        
    of 2,502,274 SINA Shares, representing approximately                      
    4.96% of the total number of SINA Shares in issue.                        
                                                                              
    The Company proposes, when appropriate, to continue                       
    to dispose on-market SINA Shares held by it via third                     
    party brokers and/or licensed dealers and it is                           
    possible that the Future Disposals, on an aggregate                       
    basis, may constitute a major transaction of the                          
    Company under the Listing Rules depending on the size                     
    of the transactions effected. If all of the remaining                     
    SINA Shares held by the Group are disposed of at an                       
    average price of US$29.17 (equivalent to                                  
    approximately HK$227.53), being the average closing                       
    price of SINA Shares on NASDAQ for the six months ended                   
    18 February 2005 (the latest practicable date prior                       
    to the date of this announcement for ascertaining such                    
    information), the total gross proceeds for the Group                      
    arising from the possible Future Disposals would                          
    amount to approximately US$72,991,333 (equivalent to                      
    approximately HK$569,332,397). The Directors propose                      
    to seek the Shareholders' approval of such possible                       
    Future Disposals at an extraordinary general meeting.                     
    So far as the Company is aware, no shareholder of the                     
    Company is required to abstain from voting on the                         
    resolution regarding such possible Future Disposals                       
    at the extraordinary general meeting.                                     
                                                                              
    A circular containing, among other things, the                            
    possible Future Disposals together with a notice                          
    convening an extraordinary general meeting, will be                       
    sent to the Shareholders as soon as possible.                             
                                                                              
    THE GROUP'S CURRENT SHAREHOLDING IN SINA                                  
                                                                              
    The Group has since February 2003 made numerous                           
    on-market disposals of part of its holding of SINA                        
    Shares, which are listed on NASDAQ, via third party                       
    brokers. As at the date of this announcement, SSMG,                       
    a 51% indirectly owned subsidiary of the Company,                         
    holds an aggregate of 2,502,274 SINA Shares,                              
    representing approximately 4.96% of the total number                      
    of SINA Shares in issue. As at 31 December 2004, the                      
    book value of the SINA Shares in the Group was                            
    approximately HK$625,738,655.                                             
                                                                              
    POSSIBLE FUTURE DISPOSALS                                                 
                                                                              
    The Company proposes, when appropriate, to continue                       
    to dispose on-market SINA Shares held by it via third                     
    party brokers and/or licensed dealers. It is the                          
    current intention that the Company will sell its SINA                     
    Shares on market. Such on-market disposals