09:51     HK CATERING MGT<00668> - Announcement (1)                           

    The Stock Exchange takes no responsibility for the                        
    contents of this announcement, makes no                                   
    representation as to the accuracy or completeness and                     
    expressly disclaims any liability for any loss                            
    howsoever, arising from or in reliance upon the whole                     
    or any part of the contents of this announcement.                         
                                                                              
    HONG KONG CATERING MANAGEMENT LIMITED                                     
    (Incorporated in Hong Kong with limited liability)                        
    (Stock Code: 668)                                                         
                                                                              
    DISCLOSEABLE TRANSACTION                                                  
    SALE OF PROPERTY                                                          
                                                                              
    The Directors of HKCM announce that on 4 March 2005,                      
    SUL, an indirect wholly-owned subsidiary of HKCM has                      
    entered into the Provisional Agreement with the                           
    Purchaser for the disposal of the Property at a                           
    consideration of HK$39,000,000. The net proceeds of                       
    the Disposal will be used for general working capital                     
    of the Group. The Consideration was arrived at after                      
    arm's length negotiation between the Vendor and the                       
    Purchaser and the Directors of HKCM consider that the                     
    terms of the Provisional Agreement are fair and                           
    reasonable.                                                               
                                                                              
    The Disposal constitutes a discloseable transaction                       
    for HKCM under the Listing Rules. A circular                              
    containing further details of the Disposal will be                        
    despatched by HKCM to its shareholders in accordance                      
    with the requirements under the Listing Rules as soon                     
    as practicable.                                                           
                                                                              
    PARTICULARS OF THE PROVISIONAL AGREEMENT                                  
                                                                              
    Date of the Agreement: 4 March 2005                                       
                                                                              
    Parties:                                                                  
                                                                              
    Vendor  :       SUL, an indirect wholly-owned subsidiary                  
    of HKCM. The principal business of HKCM and its                           
    subsidiaries is the operation of restaurants and                          
    bakeries and property investments.                                        
                                                                              
    Purchaser       :       Fu Lam Finance Co. Ltd. or its nominee.           
    To the best of the Directors' knowledge, information                      
    and belief having made all reasonable enquiry, the                        
    Purchaser and its beneficial owners are third party                       
    independent of HKCM and connected persons of HKCM.                        
                                                                              
    Fu Lam Finance Co. Ltd. was introduced to SUL, the                        
    Vendor of the Property through the property agent,                        
    who is an independent third party not connected with                      
    the Group. The Directors confirmed that none of the                       
    member of the Group has made any loan or financing                        
    arrangement with the Purchaser in connection with                         
    their purchase of the Property.                                           
                                                                              
    Assets agreed to be disposed of:                                          
                                                                              
    Shops. No.32 (with washrooms and grease traproom) and                     
    No.33 of Unit 1 on Level (site 1) 36 of Commercial                        
    Development Sceneway Garden, No.8 Sceneway Road,                          
    Kowloon. The size of the Property is 8,159 square feet.                   
    The Property is sold free from mortgages and                              
    encumbrances. The Property is currently used by the                       
    Vendor for its restaurant business. The restaurant                        
    has been operated by the Group in the Property for                        
    7 years.                                                                  
                                                                              
    Consideration