10:13     LCH BANK<01111> & LIU CHONG HING<00194>-Joint Announcement-3        

    that LCH Bank at its absolute discretion considers necessary              
    pursuant to applicable laws, regulations or rules (including              
    but not limited to the Listing Rules and the Insurance Companies          
    Ordinance and other requirements of HKMA) for its execution,              
    implementation and completion of the Sale and Purchase Agreement          
    having been obtained, including but not limited to the obtaining          
    of the prior approval of the independent shareholders of LCH              
    Bank in general meeting approving the Sale and Purchase Agreement         
    and the Transaction, and all such consents, approvals, permits,           
    authorisations not having been revoked or withdrawn at any time           
    up to and including the Conditions Fulfilment Date.                       
                                                                              
    In the event that the Conditions set out above have not been              
    fulfilled/waived on or before 5:00 p.m. (Hong Kong time) on the           
    Conditions Fulfilment Date, LCH Bank may at its option by notice          
    to LCH Investment elect to:                                               
                                                                              
    (a)     waive any of the Conditions set out in (a) and (d) above and      
    proceed to Completion;                                                    
                                                                              
    (b)     postpone Completion to a date (being a Business Day) to be        
    agreed by the LCH Bank and LCH Investment or failing agreement            
    the 30th day after the Conditions Fulfilment Date; or                     
                                                                              
    (c)     rescind the Sale and Purchase Agreement in which case such        
    agreement shall be null and void and no party to the Transaction          
    shall have any claim against the other, save and except in respect        
    of any antecendent breach of the Sale and Purchase Agreement.             
                                                                              
    In the event that any of the Conditions is waived, an appropriate         
    announcement will be made by both LCH Bank and LCH Investment.            
                                                                              
    Basis for determination of the consideration:                             
                                                                              
    The consideration for the Transaction was determined after arm's          
    length negotiations between LCH Bank and LCH Investment, with             
    reference to:                                                             
                                                                              
    (a)     the actuarially-based appraisal value of LCH Insurance (in        
    the range of between HK$153.1 million to HK$196.6 million) as             
    at 31 December 2004 using the discounted cash flow model as               
    reflected in the report of the same conducted by Watson Wyatt             
    Insurance Consulting Limited, an independent third party not              
    connected with the respective directors, chief executives or              
    substantial shareholders of LCH Bank and LCH Investment, or any           
    of their respective subsidiaries or respective Associates;                
                                                                              
    (b)     the prospects of LCH Insurance after completion of the            
    Transaction, including the joint efforts of LCH Bank and LCH              
    Insurance to expand their respective client bases and create              
    new business opportunities;                                               
                                                                              
    (c)     the synergy of grouping LCH Insurance within LCH Bank; and        
                                                                              
    (d)     the price/earnings multiple of approximately 8.2 times for        
    the Transaction.                                                          
                                                                              
    Completion:                                                               
                                                                              
    Completion shall take place on the third Business Day after the           
    satisfaction (or, if appropriate, the waiver) of the Conditions           
    (or at such later date as LCH Bank and LCH Investment may agree           
    in writing) by LCH Bank and LCH Investment. It is currently               
    expected that Completion will take place on or before 31 July             
    2005.                                                                     
                                                                              
    II.     INFORMATION ON LCH INSURANCE