09:19 COSCO PACIFIC<01199> - 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. This announcement is not an offer of securities for sale in the United States. No securities of COSCO Holdings or its affiliates may be offered or sold in the United States absent registration or an applicable exemption from registration under the United States Securities Act of 1933 in connection with the said offering. COSCO Holdings has not registered the securities in the United States and does not intend to register any part of its offering in the United States. COSCO Pacific Limited (incorporated in Bermuda with limited liability) (Stock Code: 1199) ANNOUNCEMENT The Board has been notified by COSCO that its wholly-owned subsidiary, COSCO Holdings, submitted to the Stock Exchange an advanced booking form for the Proposed Listing on 7 March 2005. The Proposed Listing is subject to, among others, regulatory approvals and may or may not proceed. Shareholders and potential investors are advised to exercise caution when dealing in the Shares. Whether the Proposed Listing is proceeded with or not, the Company's businesses will not be affected. The Board has been notified by COSCO that its wholly-owned subsidiary, COSCO Holdings, which was incorporated on 3 March 2005 in the People's Republic of China, submitted to the Stock Exchange an advanced booking form for the Proposed Listing on 7 March 2005 and that application will be made to the Stock Exchange for the listing of, and permission to deal in the H-shares of COSCO Holdings. The Board has also been informed by COSCO that as part of an internal reorganization of COSCO's core businesses and in preparation for the Proposed Listing, COSCO will inject its entire interests in its container shipping and related businesses and its entire interest in the Company into COSCO Holdings. After completion of the reorganization, the Company will become a member of the COSCO Holdings group of companies, and COSCO will, through COSCO Holdings, continue to be the Company's ultimate controlling shareholder, although its effective interest in the Company will be diluted in the event that COSCO Holdings is successfully listed, such dilution will be corresponding to the reduction of COSCO's interest in COSCO Holdings. No change to the businesses of the Company will be made as a result of the Proposed Listing, and the listing status of the Company will also remain unchanged. After the reorganization and even after COSCO Holdings is listed, the positioning of the current businesses of the Company, including container leasing, container terminals, logistics and container manufacturing will remain unchanged. The Company will continue to be the only vehicle in the COSCO group for carrying on container leasing and container terminal investment businesses. The Company will continue to enjoy the right of first refusal granted by COSCO to the Company when the Company was listed in respect of filling the demand for container leasing of the companies in the COSCO group, and the connected transaction waiver related to container leasing granted by the Stock Exchange will continue to be effective. The container shipping fleets of COSCO can be expected to be further strengthened after COSCO Holdings is listed. As a result, the Company would benefit directly in respect of its provision of container leasing and terminal services to COSCON. COSCO will continue to fully support the Company in developing and expanding its core businesses as before. If COSCO Holdings is successfully listed on the Stock Exchange, there may be situations where transactions of the Group will also require the approval of shareholders of COSCO Holdings under the Listing Rules. Such requirement could mean that in the future, transactions of the Group may be required to undergo additional procedure and require additional time before they can be undertaken. Nevertheless, the Board believes that the Proposed Listing should be positive and synergistic to the core businesses of the Company. The Proposed Listing is subject to, among others, regulatory approvals and may or may not proceed. Shareholders and potential investors are advised to exercise caution when dealing in the Shares. Whether the Proposed Listing is proceeded with or not, the Company's businesses will not be affected.