09:34     FORTE<02337> - Announcement (2)                                     

    The Vendor is responsible for site clearance. Provision of public         
    utilities will be as of the current status. Delivery of the New Site      
    for vacant possession by the Vendor shall be on or before 31 December     
    2005.                                                                     
                                                                              
    Summary of the terms of the New Site Land Use Rights Grant Contract       
                                                                              
                                                                              
    Consideration                                                             
    The consideration payable by the Company for the acquisition of the       
    New Site is RMB 70,790,000 which was the price offered and indicated      
    by the Company in its tender submitted to the Land Bureau. The            
    consideration was determined with reference to current market price       
    in Wuxi and the consideration for the acquisition of the Old Sites.       
                                                                              
                                                                              
    Payment terms                                                             
    The consideration of RMB70,900,000 for the acquisition of the New         
    Site shall be paid by the Company by instalments in the following         
    manner:                                                                   
                                                                              
    (i)                                                                       
    a guarantee payment of RMB20,000,000 was made by the Company when it      
    submitted its tender to the Land Bureau in November 2004 (`Guarantee      
    Payment');                                                                
                                                                              
    (ii)                                                                      
    a deposit of RMB14,160,000, being 20% of the consideration, shall be      
    paid by the Company within three days from the date of the New Site       
    Land Use Rights Grant Contract. The entire sum of the deposit will be     
    deducted from the Guarantee Payment;                                      
                                                                              
    (iii)                                                                     
    The first instalment of RMB7,080,000, being 10% of the                    
    consideration, shall be paid by the Company within three days from        
    the date of the New Site Land Use Rights Grant Contract. A sum of         
    RMB5,840,000, being the balance of the Guarantee Payment, will be         
    paid out of the Guarantee Payment to form part of the first               
    instalment; and                                                           
                                                                              
    (iv)                                                                      
    The second instalment of RMB49,550,000, being 70% of the                  
    consideration, shall be paid by the Company within three months from      
    the date of the New Site Land Use Rights Grant Contract.                  
                                                                              
    It was agreed between the Company and the Vendor that application         
    will be made by the Company to the Land Bureau within 30 days from        
    the full payment of the consideration for the issuance of the land        
    use rights certificate of the New Site in the name of the Company.        
                                                                              
    Funding                                                                   
    The consideration payable by the Company for the acquisition of the       
    New Site is intended to be funded by internal financial resources of      
    the Group. It is expected that the acquisition of the New Site will       
    have no adverse impact on the cash flow of the Group.                     
                                                                              
    Reasons for the acquisition of the New Sites                              
    The Group plans to develop a residential development project on a         
    parcel of land which comprises the New Site and the Old Sites. It is      
    proposed by the Company that the total GFA of the residential             
    development project amounts to approximately 400,000 sq.m. with           
    approximately 3,000 residential units. The total investment cost is       
    estimated to be approximately RMB1 billion. However, the development      
    plans of the residential development project are still subject to         
    approvals of the relevant authorities in Wuxi.                            
                                                                              
    The Directors are of the opinion that the acquisition of the New          
    Site is in the interest of the Company and its shareholders as a          
    whole as it will increase the site area and the proposed GFA of the       
    residential development project to be developed by the Group. The         
    Directors confirmed that the terms of the New Site Land Use Rights        
    Grant Contract is fair and reasonable and in the interests of the         
    Company and its shareholders as a whole.                                  
                                                                              
    Information on the Vendor                                                 
    The Vendor is the Land Bureau, a governmental department in the PRC.      
    To the best of the Directors' knowledge, information and belief, and      
    having made due enquiry, the Vendor is an Independent Third Party.        
                                                                              
    Implications under the Listing Rules                                      
    Since the Group intends to develop a single residential development       
    project on a parcel of land which comprises both the New Site and the     
    Old Sites, the acquisition of the New Site would be aggregated to the     
    acquisition of the Old Sites based on the principle of aggregation of     
    transactions under the Listing Rules and is therefore considered as a     
    discloseable transaction of the Company under the Listing Rules. A        
    circular containing details of the acquisition of the New Site will       
    be dispatched to the shareholders of the Company as soon as               
    practicable.                                                              
                                                                              
    General