09:52 CHINESE EST H<00127>-Announcement & Resumption of Trading-2 Completion of the Subscription Agreement is subject to the satisfaction and/or waiver of the conditions precedent therein. In addition, the Subscription Agreement may be terminated under certain circumstances. Please refer to the paragraph headed "SUBSCRIPTION AGREEMENT" below for further information. As the Subscription Agreement may or may not complete, Shareholders and potential investors are advised to exercise caution when dealing in the Shares of the Company. The Shares to be issued upon conversion of the Bonds will be issued and allotted by the Company pursuant to the general mandate granted to the Directors at the annual general meeting held on 18 May 2004. The Company will apply to the Stock Exchange for the listing of, and permission to deal in, the Conversion Shares. The Company intends to apply for the listing of the Bonds on the Stock Exchange by way of selectively marketed securities. The Company has noted that there have been press reports on 10 March 2005 that part of the proceeds of the Bonds Issue will be used by the Company for investing in Macau. The Company wishes to clarify that there has been region-wide exploration of business opportunities. Investment opportunities in Macau are part of the business opportunities that the Company has come across. Currently the Company has no definitive plan to pursue any definitive investment opportunities in Macau. In the absence of any definitive investment opportunities the Company has no plan to use the proceeds of the Bonds Issue for Macau investment purposes. Trading in the Shares of the Stock Exchange was suspended at the request of the Company with effect from 9:30 am on 10 March 2005 pending the release of this announcement. The Company has applied for a resumption of trading in its Shares with effect from 9:30 am on 11 March 2005. SUBSCRIPTION AGREEMENT Date: 9 March 2005 Parties: The Company Deutsche Bank (Deutsche Bank and their ultimate beneficial owners are all not connected persons (as defined in the Listing Rules) of the Company) Subject to the fulfilment of the conditions set out below under the section headed "Conditions Precedent of the Subscription Agreement", Deutsche Bank has agreed to subscribe or procure subscribers for the Firm Bonds with an initial aggregate principal amount of HK$1,500,000,000 and if the Option is exercised, to subscribe or procure subscribers for the Optional Bonds with an aggregate principal amount up to HK$500,000,000. Deutsche Bank has been granted an option which can be exercised on one or more occasions (provided that such option shall not be exercised more than once on any one day), in whole or in part, at any time, on or before the thirtieth day following the Closing Date, to require the Company to issue up to a further HK$500,000,000 in aggregate principal amount of Optional Bonds. The Bonds will be offered and sold to persons whose ordinary business involves buying, selling or investing in securities outside the United States in reliance upon Regulation S of the US Securities Act of 1933 (as amended). None of the Bonds will be offered to the public in Hong Kong nor will they be placed to any connected persons (as defined in the Listing Rules) of the Company. Deutsche Bank may, to the extent permitted by applicable laws, over-allot and effect transactions with a view to supporting the market price of the Bonds at a level higher than that which might otherwise prevail. However, there is no obligation on Deutsche Bank to do this. Such stabilising, if commenced, may be discontinued at any time. Deutsche Bank will conduct any such stabilisation activities in accordance with applicable laws and