09:34 FORTE<02337> - 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. SHANGHAI FORTE LAND CO., LTD.* (a joint stock limited company incorporated in the People's Republic of China with limited liability) (Stock Code: 2337) DISCLOSEABLE TRANSACTION ACQUISITION OF LAND IN WUXI, JIANGSU PROVINCE, THE PRC The Directors are pleased to announce that on 28 February 2005, the Company entered into the New Site Land Use Rights Grant Contract with the Vendor in respect of the acquisition of the New Site in Wuxi, Jiangsu Province, the PRC, of a site area of approximately 63,775.5 sq.m., for a consideration of RMB70,790,000. The Group acquired the Old Sites on 12 September 2004 which is adjacent to the New Site. The Group plans to develop a single 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. To the best of the Directors' knowledge, information and belief, and having made due enquiry, the Vendor is an Independent Third Party. 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. The Directors are pleased to announce that on 28 February 2005, the Company entered into the New Site Land Use Rights Grant Contract with the Vendor in respect of the acquisition of the New Site in Wuxi, Jiangsu Province, the PRC, for a consideration of RMB70,790,000. The Old Sites The Company entered into the Old Sites Land Use Rights Transfer Contract with the Old Sites Vendor on 12 September 2004. The aggregate consideration for the Old Sites was RMB283,857,463. An announcement regarding the acquisition of the Old Sites, as a discloseable transaction under the Listing Rules, was made on 12 September 2004. A circular in respect of such acquisitions was also despatched to the shareholders of the Company on 30 September 2004. The New Site The Company submitted a tender for the New Site to the Land Bureau on 10 November 2004. The Company received a notice from the Land Bureau on 23 February 2005 that it won the tender for the New Site. The New Site Land Use Rights Grant Contract was entered into between the Company and the Land Bureau on 28 February 2005. Information on the New Site Details of the New Site are summarised below: Location: Lot No. XHDG-2002-32, Huishan District, Wuxi, Jiangsu Province Site area: 63,775.5 sq.m. Permitted plot ratio: Less than or equal to 1.5 Land use: Residential, commercial and any other use Owner of the land use right The Vendor before the acquisition: Term of land use right: 70 years commencing from 31 December 2005 for residential use, 40 years commencing from 31 December 2005 for commercial use and 50 years commencing from 31 December 2005 for any other use