09:12     GOLD PEAK<00040> - Announcement & Resumption of Trading (4)         

    of the Share Purchase Agreements and the Loan                             
    Agreement having been approved by the Independent                         
    Shareholders by poll at the EGM and will take place                       
    immediately thereafter.                                                   
                                                                              
    INFORMATION ON GERARD CORPORATION                                         
    Gerard Corporation is an investment holding company                       
    incorporated in Australia with limited liability. Its                     
    subsidiaries are principally engaged in the                               
    businesses of manufacturing, printing, packaging,                         
    freight forwarding, commercial property ownership                         
    and rural interests in forestry and agriculture.                          
                                                                              
    SUMMARY OF FINANCIAL RESULTS OF GERARD CORPORATION                        
    Gerard Corporation was incorporated in February 2003.                     
    It has been operated for less than two years. A summary                   
    of the unaudited consolidated results of Gerard                           
    Corporation for the year ended June 30, 2004 is as                        
    follows:                                                                  
                                                                              
    Year ended June 30, 2004                                                  
    A$'000          HK$'000                                                   
                                                                              
    Turnover        61,170          376,501                                   
    Loss before tax and minority interests  (32,629 )                         
            (200,831        )                                                 
    Loss after tax and minority interests   (30,973 )                         
            (190,639        )                                                 
                                                                              
    The unaudited net asset value of Gerard Corporation                       
    as at June 30, 2004 amounted to approximately A$118.9                     
    million (or approximately HK$731.8 million) net of                        
    shareholders' loans.                                                      
                                                                              
    REASONS AND BENEFITS FOR THE TRANSACTION                                  
    The Transaction is pursuant to and in line with CIHL's                    
    continuing efforts to divest its interests in                             
    non-core businesses.                                                      
                                                                              
    Since Gerard Corporation is a loss-making company and                     
    the transfer of interest in Gerard Corporation is                         
    subject to pre-emption rights, it is difficult to                         
    identify a passive minority investor other than the                       
    Purchasers. Moreover, Tarway Two's shareholder's                          
    loan in the amount of A$22.1 million (or approximately                    
    HK$136.0 million) will be converted from non-interest                     
    bearing and having no fixed repayment term to interest                    
    bearing with a repayment schedule.                                        
                                                                              
    The Board believes that the terms of the Share                            
    Purchase Agreements and the Loan Agreement are fair                       
    and reasonable and the Transaction is in the interests                    
    of the Company and its shareholders as a whole.                           
                                                                              
    USE OF PROCEEDS AND FINANCIAL EFFECT OF THE                               
    TRANSACTION                                                               
    CIHL intends to use the net proceeds of the                               
    Transaction for general working capital purposes.                         
    There will not be any profit or loss from the                             
    Transaction for both CIHL and the Group. The Board                        
    believes that the Transaction would not give rise to                      
    any material effect on the working capital, gearing                       
    ratio and the net assets of the Group.                                    
                                                                              
    GENERAL                                                                   
    The Company acts as an investment holding company.                        
    The activities of its principal subsidiaries and                          
    associates are investment holding and manufacturing,                      
    marketing and trading of batteries, electronic and                        
    acoustics products, wire harness, cables, electrical                      
    installation products and LED display screens. CIHL                       
    is a 65.1% owned subsidiary of GP Industries. GP                          
    Industries is the main