09:32     GOLDEN HARVEST<01132> - Announcement (3)                            

    GEMS is an investment holding company. The principal asset                
    of GEMS is its 25% shareholding interest in TGV, in which                 
    the Group through Golden Harvest Cinemas already holds a                  
    direct 25% shareholding. TGV is principally engaged in film               
    exhibition in Malaysia. For the year ended 31 December 2003,              
    GEMS recorded the audited consolidated net profits of                     
    RM86,451 (approximately HK$177,440.68). GEMS recorded the                 
    unaudited consolidated net profits of RM1,850,106.86                      
    (approximately HK$3,797,344.33) for the year ended 31                     
    December 2004. The unaudited consolidated net tangible                    
    assets of GEMS as at 31 December 2004 were RM4,758,561.14                 
    (approximately HK$9,766,946.74) (taking into account the                  
    shareholder's loan of RM10,382,997.00 (approximately                      
    HK$21,311,101.34). The shareholders' loans due from GEMS                  
    to its shareholders amounted to RM10,382,997.00                           
    approximately HK$21,311,101.34) in aggregate as at 31                     
    December 2004. The consideration of each of the PPB                       
    Acquisition and the Tanjong Acquisition represents a                      
    discount of approximately 15% to the share of the unaudited               
    consolidated net tangible assets of GEMS as at 31 December                
    2004.                                                                     
                                                                              
    The Group currently holds approximately 33.33%                            
    shareholding interest in GEMS. By purchasing approximately                
    an additional 33.33% shareholding interest in GEMS from                   
    each of PPB and Tanjong, the Acquisitions will enable the                 
    Group to consolidate its interests in GEMS so that it will                
    become a wholly-owned subsidiary of the Group following                   
    completion of the Acquisitions. With the Group's existing                 
    direct 25% shareholding interest in TGV, the completion                   
    of Acquisitions will also result in the Group's aggregate                 
    shareholding interests in TGV increasing to 50%.                          
                                                                              
    As stated in the 2004 annual report of the Company, the                   
    total cinema box office in Malaysia increased by 23% to                   
    RM139 million (approximately HK$285,297,500) in 2004. TGV                 
    showed an 18% increase in reported cinema box office                      
    receipts to RM49.2 million (approximately HK$100,983,000),                
    partly due to the addition of two new screens. Taking into                
    account the further growth prospects of TGV, the Directors                
    are of the view that the Acquisitions should be able to                   
    bring additional cash flows and earnings to the Group,                    
    thereby improving its financial position.                                 
                                                                              
    D.   LISTING RULES IMPLICATIONS                                           
    Under the Listing Rules, the Acquisitions together                        
    constitute a discloseable transaction for the Company. A                  
    circular containing, among other things, further details                  
    of the Acquisitions will be despatched to its shareholders                
    as soon as practicable.                                                   
                                                                              
    E.   DEFINITIONS USED IN THIS ANNOUNCEMENT                                
    "associate(s)"   has the meaning given to this term in the                
    Listing Rules                                                             
                                                                              
    "Acquisitions"   the PPB Acquisition and the Tanjong                      
    Acquisition                                                               
                                                                              
    "Company"   Golden Harvest Entertainment (Holdings)                       
    Limited, a company incorporated in Bermuda with limited                   
    liability, the shares of which are listed on the Stock                    
    Exchange                                                                  
                                                                              
    "Directors"   the directors of the Company                                
                                                                              
    "GEMS"   Global Entertainment and Management Systems Sdn.                 
    Bhd., a company incorporated in Malaysia, which is                        
    currently owned as to 33.33% by each of Golden Harvest                    
    Cinemas, PPB and Tanjong                                                  
                                                                              
    "Golden Harvest Cinemas"   Golden Harvest Cinemas Holding                 
    Ltd., a company incorporated in the British Virgin Islands,               
    which is a wholly-owned subsidiary of the Company                         
                                                                              
    "Group"   the Company and its subsidiaries                                
                                                                              
    "Hong Kong"   the Hong Kong Special Administrative Region                 
    of the People's Republic of China                                         
                                                                              
    "HK$"   Hong Kong dollars, the lawful currency of Hong Kong               
                                                                              
    "Listing Rules"   the Rules Governing the Listing of                      
    Securities on the Stock Exchange                                          
                                                                              
    "PPB"   PPB Group Bhd., a company incorporated in Malaysia