09:26     MIRAMAR HOTEL<00071> - 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.               
                                                                              
    MIRAMAR HOTEL AND INVESTMENT COMPANY, LIMITED                             
    (Incorporated in Hong Kong with limited liability)                        
    (Stock Code: 71)                                                          
                                                                              
    CONTINUING CONNECTED TRANSACTION                                          
                                                                              
    On 8 February 2005, the Confirmation of Sub-Lease was entered             
    into between Profit Advantage Limited, a wholly-owned subsidiary of       
    the Company as tenant and IFC Development Limited as landlord,            
    whereby the Landlord agreed to sub-lease to the Tenant the Premises       
    upon the terms as detailed below in this announcement.                    
                                                                              
    As the Landlord is an associate of Henderson Land Development             
    Company Limited, a substantial shareholder of the Company, it is a        
    connected person of the Company under Rule 14A.11 of the Listing          
    Rules and the entering into of the Confirmation of Sub-Lease              
    constitutes a continuing connected transaction for the Company under      
    Rule 14A.13 of the Listing Rules.                                         
                                                                              
    The Continuing Connected Transaction will constitute a continuing         
    connected transaction under Rule 14A.34 of the Listing Rules and          
    details of the Continuing Connected Transaction will be subject to        
    disclosure in an announcement and inclusion in the next published         
    annual report and accounts of the Company under Rules 14A.45 to           
    14A.47 of the Listing Rules. The Company will also comply with the        
    requirements under Rule 14A.37 to Rule 14A.41 of the Listing Rules in     
    relation to the Continuing Connected Transaction during each of the       
    three years ended 31 March 2005, 2006 and 2007. As the Continuing         
    Connected Transaction, on an annual aggregate basis, does not exceed      
    2.5% of each of the applicable percentage ratios under the Listing        
    Rules, no shareholders' approval is required.                             
                                                                              
                                                                              
    DETAILS OF THE CONFIRMATION OF SUB-LEASE                                  
    Date:                          8 February 2005                            
    Parties:                       Profit Advantage Limited, a                
                                   wholly-owned subsidiary of                 
                                   the Company, as tenant.                    
                                   IFC Development Limited, an                
                                   associate of Henderson Land                
                                   Development Company Limited,               
                                   as landlord                                
    Premises:                      Shop Nos. 3101-3107 on Level               
                                   Three of ifc Mall (Retail                  
                                   Accommodation on Site R of                 
                                   Inland Lot No.8898), of                    
                                   approximately 16,138 square                
                                   feet                                       
    Term:                          Initial term of three (3)                  
                                   years taken to commence from               
                                   7 July 2004 (Note)                         
    Rent and other charges :       The rent payable on monthly                
                                   basis (exclusive of rates,                 
                                   air-conditioning and management            
                                   charges, promotional levy and              
                                   all other outgoings) during                
                                   the term shall be as                       
                                   follows:-                                  
                                    (i) From 7 November 2004 to               
                                   6 July 2005 (Note), basic                  
                                   rent in the sum of HK$435,726              
                                   per month together with                    
                                   turnover rent representing                 
                                   the amount by which 10% of                 
                                   the Gross Receipts exceeds                 
                                   the basic rent per month (the              
                                   `Turnover Rent')  (ii) From 7              
                                   July 2005 to 6 July 2007,                  
                                   basic rent in the sum of                   
                                   HK$484,140 per month together              
                                   with the Turnover Rent  (iii)              
                                    From 7 July 2007 to 6 July                
                                   2010 (the `First Renewed                   
                                   Period'), provided the 1st                 
                                   Option (as defined below) is               
                                   exercised by the Tenant, at                
                                   open market rent provided                  
                                   that the basic rent shall not              
                                   be less than HK$484,140 per                
                                   month or more than HK$580,968              
                                   per month, together with the               
                                   Turnover Rent  (iv) From 7                 
                                   July 2010 to 6 July 2013 (the              
                                   `Second Renewed Period'),                  
                                   provided the 2nd Option (as                
                                   defined below) is exercised                
                                   by the Tenant, at open market