09:21     PREMIUM LAND<00164> - 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.                                                     
                                                                              
    PREMIUM LAND LIMITED                                                      
    *                                                                         
    (incorporated in Bermuda with limited liability)                          
    (Stock Code: 164)                                                         
                                                                              
    PROPOSED CAPITAL REORGANISATION INVOLVING,                                
     INTER ALIA, SHARE CONSOLIDATION FOLLOWED BY CAPITAL                      
    REDUCTION AND                                                             
    CHANGE IN BOARD LOT SIZE                                                  
                                                                              
    Proposed Capital Reorganisation                                           
    The Directors propose to effect the Capital                               
    Reorganisation which will involve:                                        
                                                                              
    (i)     the Share Consolidation pursuant to which every                   
    20 Shares of HK$0.01 each in the issued share capital                     
    of the Company shall be consolidated into one                             
    Consolidated Share of HK$0.20 each in the issued share                    
    capital of the Company; and                                               
                                                                              
    (ii)    the Capital Reduction under which the nominal                     
    value of all the issued Consolidated Shares shall be                      
    reduced from HK$0.20 each to HK$0.01 each by canceling                    
    HK$0.19 of the paid-up capital from each issued                           
    Consolidated Share such that the issued share capital                     
    of the Company will be reduced from an amount of                          
    HK$54,137,259.70 comprising 270,686,298                                   
    Consolidated Shares of HK$0.20 each to                                    
    HK$2,706,862.98 comprising 270,686,298 New Shares of                      
    HK$0.01 each upon completion of the Capital                               
    Reduction.                                                                
                                                                              
    As at the date of this announcement, the authorised                       
    share capital of the Company is HK$150,000,000                            
    comprising 15,000,000,000 Shares, of which                                
    5,413,725,970 Shares have been issued and fully paid.                     
    Assuming no further Shares will be issued from the                        
    date of this announcement up to the date of the SGM,                      
    there will be 270,686,298 Consolidated Shares in                          
    issue immediately following the Share Consolidation                       
    and after the Capital Reduction, there will be                            
    270,686,298 New Shares in issue.                                          
                                                                              
    Upon completion of the Capital Reorganisation, the                        
    authorised share capital of the Company will remain                       
    HK$150,000,000 but divided into 15,000,000,000 New                        
    Shares, comprising 270,686,298 issued New Shares and                      
    14,729,313,702 unissued New Shares, upon completion                       
    of the Capital Reorganisation.                                            
                                                                              
    The Company intends to apply the credit balance of                        
    approximately HK$51.43 million that will arise as a                       
    result of the Capital Reduction to the contributed                        
    surplus account of the Company where it shall be                          
    utilised to set off part of the accumulated losses                        
    of the Company. The Capital Reorganisation will have                      
    no effect on the consolidated net assets, business                        
    operations, management or financial position of the                       
    Company and its subsidiaries or the interests of the                      
    Shareholders as a whole except for the payment of the                     
    expenses relating to the Capital Reorganisation.                          
                                                                              
    Change in Board Lot Size                                                  
    The Shares are currently traded in board lots of                          
    10,000 Shares. To increase the value of each board                        
    lot after the Capital Reorganisation, the Board