10:23     SHIMAO CHINA<00649> - Announcement & Resumption (19)                

    leadership and direction of the Shimao brand in the                       
    Group's international markets as Chairman of the                          
    Company.                                                                  
                                                                              
    New Composition of the Board                                              
    Upon all of the above changes taking effect, the                          
    composition of the Board will be as follows:                              
                                                                              
    Name    Position                                                          
    Mr. Hui Wing Mau:       Chairman and Non-executive                        
    Director                                                                  
    Ms. Hui Mei Mei, Carol: Deputy Chairman and                               
    Executive Director                                                        
    Mr. Chan Loo Shya:      Executive Director                                
    Mr. Tung Chi Shing, Joseph:     Executive Director                        
    Professor Lee Chack Fan:        Independent non-executive                 
    Director                                                                  
    Mr. Liu Hing Hung:      Independent non-executive                         
    Director                                                                  
    Mr. Zhu Wenhui: Independent non-executive Director                        
                                                                              
    Board Committees                                                          
    As a result of the above changes to the composition                       
    of the Board, the Board further announces that Mr.                        
    Yu Hon To, David has stepped down as Chairman and a                       
    member of the audit committee, and Mr. Liu Hing Hung,                     
    currently a member of the audit committee, has been                       
    appointed Chairman of the audit committee. Professor                      
    Lee Chack Fan and Mr. Zhu Wenhui will remain as the                       
    other two members of the audit committee.                                 
                                                                              
    Background to the Change                                                  
    The above changes in the composition of the Board                         
    would not affect the business operation of the Group.                     
    Although a number of the Company's existing Directors                     
    have resigned or intend to resign, this is in line                        
    with the new business strategic focus of the Group.                       
    As the Company currently focuses on property                              
    developments both within and outside of Mainland                          
    China, the composition of the Board reflects the                          
    expertise required to ensure that its Directors                           
    possess sufficient knowledge and expertise of the                         
    property industry in Mainland China. However, as the                      
    Company adopts its new business strategy of focusing                      
    on property developments outside Mainland China, the                      
    Company has reassessed the composition of its Board                       
    to ensure that the backgrounds of the Directors are                       
    aligned with the Company's new strategic business                         
    focus, and the appointment of Mr. Tung and Mr. Chan                       
    as executive Directors of the Company reflects this.                      
    At the same time, the resignations of the executive                       
    Directors would not affect the business operation of                      
    the Group, given that the Group's two developments                        
    are reaching completion. Mr. Jason Hui, Mr. Ip, Mr.                       
    Tang and Ms. Yao are based in Mainland China and have                     
    oversight functions at the Group but the day-to-day                       
    responsibility for relevant projects in Mainland                          
    China (there being only one) rests with individual                        
    project managers on the ground. As the workload                           
    arising from the Group's only Mainland China project                      
    decreased, Mr. Jason Hui, Mr. Ip, Mr. Tang and Ms.                        
    Yao have, since the start of 2003 (except for Mr. Ip,                     
    who joined in July 2003), also taken up their current                     
    group senior management positions at the SPHL Group                       
    with responsibility over its property development                         
    projects in their respective areas of expertise. Mr.                      
    Hui (as Chairman) and Ms. Carol Hui (as executive                         
    Director) will remain on the Board to provide the                         
    strategic leadership and direction of the Shimao                          
    brand in the Group's international markets, whilst                        
    those Directors who intend to resign from the Board