09:29     LIFESTYLE INT'L<01212> - Announcement & Resumption (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.                                
                                                                              
    LIFESTYLE INTERNATIONAL HOLDINGS LIMITED                                  
    *                                                                         
    (incorporated in the Cayman Islands with limited liability)               
    (Stock Code: 1212)                                                        
                                                                              
    CONTINUING CONNECTED TRANSACTION                                          
                                                                              
    To expand its department store business on the Kowloon side               
    at a prime location of Tsimshatsui, on 24 February 2005,                  
    Sogo HK, a wholly owned subsidiary of the Company, entered                
    into the Lease as tenant with HK Island, an associate of                  
    CTF who has 50% indirect interest in the controlling                      
    shareholder of the Company, as landlord, in relation to the               
    Premises for a term of 15 years.                                          
                                                                              
    Pursuant to the Lease, HK Island has conditionally agreed                 
    to lease the Premises to Sogo HK for a period of 15 years                 
    commencing from 15 September 2005 or the date of Sogo HK's                
    commencement of business at the Premises, whichever is                    
    earlier, or such other date as may be agreed between Sogo                 
    HK and HK Island, at a monthly rent of 6% to 7% of all sales              
    generated and/or received from the business carried on at                 
    the Premises.  Sogo HK shall also be responsible to pay for               
    the Air-conditioning Charges and Management Fees,                         
    Government rates and other outgoings.                                     
                                                                              
    It is proposed that the aggregate of the annual rental, the               
    Air-conditioning Charges and Management Fees, extra                       
    air-conditioning charges, vetting fee for the fitting out                 
    works and sharing of fees received for displaying                         
    promotional materials on the glass walls and windows of the               
    entrance and the 24-hour passage payable by Sogo HK for each              
    of the three years ending 31 December 2007 shall be subject               
    to the cap of HK$75 million for the purpose of Chapter 14A                
    of the Listing Rules.                                                     
                                                                              
    HK Island is an associate of CTF who has 50% indirect                     
    interest in Real Reward, a controlling shareholder of the                 
    Company, and therefore a connected person of the Company                  
    as defined under Rule 14A.11 of the Listing Rules and the                 
    Lease constitutes a continuing connected transaction under                
    the Listing Rules.  As the applicable percentage ratio for                
    the Cap exceeds 2.5%, the Lease is subject to the reporting               
    requirements and the approval of the Independent                          
    Shareholders under Chapter 14A of the Listing Rules.                      
                                                                              
    A circular containing the particulars of the Lease required               
    by the Listing Rules and a notice convening the EGM to                    
    approve the Lease and the Cap will be sent to the                         
    Shareholders as soon as practicable.                                      
                                                                              
    Trading in the shares of the Company on the Stock Exchange                
    was suspended at the request of the Company pending the                   
    release of this announcement at 9:30 a.m. on 24 February                  
    2005.  Application has been made for resumption of trading                
    at 9:30 a.m. on 25 February 2005.                                         
                                                                              
    INTRODUCTION                                                              
                                                                              
    To expand its department store business on the Kowloon side               
    at a prime location of Tsimshatsui, on 24 February 2005,                  
    Sogo HK, a wholly owned subsidiary of the Company, entered                
    into the Lease as tenant with HK Island, an associate of                  
    CTF who has 50% indirect interest in a controlling                        
    shareholder of the Company, as landlord, in relation to the               
    Premises for a term of 15 years.                                          
                                                                              
    RELATIONSHIP BETWEEN THE CONNECTED PERSONS AND THE COMPANY                
                                                                              
    Go Create Limited, a company wholly owned by CTF, is                      
    interested in 50% of Real Reward, the direct controlling                  
    shareholder of the Company.  By virtue of its indirect                    
    shareholding in the Company, CTF is a connected person of                 
    the Company under the Listing Rules.  CTF is interested in                
    approximately 35.33% of the entire issued share capital in                
    NWD and NWD Group owns the entire issued share capital of                 
    HK Island.  As an associate of CTF, HK Island is a connected              
    person of the Company.  Therefore, the Lease constitutes                  
    a continuing connected transaction under Chapter 14A of the