09:26     CHINA UNITED<00273> - Announcement (2)                              

    Exchange for the listing of and permission to deal in the Placing         
    Shares.                                                                   
                                                                              
    Termination                                                               
    The Placing is subject to termination on the occurrence of certain        
    events before 9:30a.m. (Hong Kong time) on the dates for completion       
    of the Placing Agreement including:                                       
                                                                              
    1. any material breach of any of the representations and warranties set   
    out in the Placing Agreement; or                                          
                                                                              
    2. the introduction of any new law or regulation or any change in         
    existing laws or regulations or change in the interpretation or           
    application thereof; or                                                   
                                                                              
    3. the occurrence of any event, development or change (whether or not     
    local, national or international or forming part of a series of           
    events or changes occurring or continuing before, on and/or after the     
    date hereof and including an event or change in relation to or a          
    development of an existing state of affairs) of a political,              
    military, industrial, financial, economic or other nature, whether or     
    not sui generis with any of the foregoing, resulting in a material        
    adverse change in, or which might be expected to result in a material     
    adverse change in, political, economic or stock market conditions; or     
                                                                              
                                                                              
    4. the imposition of any moratorium suspension or material restriction    
    on trading in securities generally on the Stock Exchange occurring        
    due to exceptional financial circumstances or otherwise; or               
                                                                              
    5. a change or development involving prospective change in taxation in    
    Hong Kong or the People's Republic of China or the implementation of      
    exchange controls which shall or might materially and adversely           
    affect the Company and its subsidiaries (as a whole) or its present       
    or prospective shareholders in their capacity as such; or                 
                                                                              
    6. any change or deterioration in the conditions of local, national or    
    international securities markets occurs.                                  
                                                                              
    The Board is not aware of the occurrence of any of such events as at      
    the date of this announcement.                                            
                                                                              
    Completion                                                                
    The Placing is to be completed on the second business day (or such        
    other date as may be agreed between the Company, the Placing Agent        
    and the Financial Adviser) after satisfaction of the condition as         
    stated under the paragraph headed `Condition of the Placing' above.       
    The Placing Agreement will lapse if the condition is not satisfied by     
    31st March 2005, or such other date as may be agreed between the          
    Company, the Placing Agent and the Financial Adviser. If the Placing      
    Agreement was lapsed, neither parties shall have any claims against       
    the others save for any prior breaches of the Placing Agreement and       
    the documentation fee for the Financial Adviser.                          
                                                                              
    General Mandate                                                           
    The Placing Shares will be issued under the General Mandate. As at        
    the date of this announcement, no Shares have been issued and             
    allotted under the General Mandate.                                       
                                                                              
    Use Of Proceeds                                                           
    If the Placing Shares are fully placed, the net proceeds of               
    approximately HK$45.3 million will be used as approximately HK$15.3       
    million and HK$30 million as working capital and properties               
    investments in Macau respectively. The Board considers that the           
    property markets in Macau possess substantial upside potential.           
    However, no targets have been identified yet.                             
                                                                              
    Reasons for the Placing                                                   
    In view of the current stock market sentiment and the stock price of      
    the Shares, the Board considers that the Placing represents an            
    opportunity for the Company to raise capital while broadening the         
    shareholders base without any interest burden to the Company.             
                                                                              
    The Board considers that the terms of the Placing Agreement, which        
    were arrived at after arm's length negotiations between the Placing       
    Agent, the Financial Adviser and the Company, which are fair and          
    reasonable and are in the interests of the Shareholders and the           
    Company as a whole.                                                       
                                                                              
    Funds Raised By The Company During The Past 12 Months                     
    The Company issued Old Convertible Notes on 19th August 2004,             
    details of which are mentioned in the announcement of the Company         
    dated 11th June, 23rd July and 9th November 2004. The net proceeds        
    was approximately HK$53.7 million and were used for the reducing of       
    the borrowing of the Company.                                             
                                                                              
    The Company placed 17,640,000 new Shares at HK$0.24 per Share as          
    referred to the announcement of the Company dated 29th November 2004.