09:47     HK CHINESE LTD<00655> & HK BLDG & LOAN<00145>-Joint Ann. (5)        

    The LCR Trading Accounts Agreement and the HKBLA                          
    Trading Accounts Agreement do not constitute                              
    continuing connected transactions for LCR under the                       
    exemption set out in Rule 14A.31(1) of the Listing                        
    Rules as no connected person (as defined under the                        
    Listing Rules) of LCR (other than at the level of its                     
    subsidiaries) is (individually or together) entitled                      
    to exercise, or control the exercise of, 10 per cent.                     
    or more of the voting power at the general meeting                        
    of HCL or HKBLA (as the case may be) other than through                   
    LCR's shareholding interests in HCL or HKBLA.                             
                                                                              
    The LC Trading Accounts Agreement constitutes a                           
    continuing connected transaction for each of Lippo                        
    and LCR under Chapter 14A of the Listing Rules by                         
    virtue of Lippo Securities and Lippo Futures being                        
    indirect wholly-owned subsidiaries of HCL, and Lippo                      
    Cayman being an indirect controlling shareholder of                       
    Lippo and LCR which in turn are controlling                               
    shareholders of HCL, thereby constituting Lippo                           
    Cayman a connected person of each of Lippo and LCR                        
    under the Listing Rules. In addition, the Lippo                           
    Trading Accounts Agreement constitutes a continuing                       
    connected transaction for LCR under Chapter 14A of                        
    the Listing Rules by virtue of Lippo Securities and                       
    Lippo Futures being indirect wholly-owned                                 
    subsidiaries of HCL and Lippo being an indirect                           
    controlling shareholder of LCR, thereby constituting                      
    Lippo a connected person of LCR under the Listing                         
    Rules.                                                                    
                                                                              
    However, each of the applicable percentage ratios (as                     
    defined in the Listing Rules) on an annual basis for                      
    Lippo in respect of LC Trading Accounts Agreement and                     
    for LCR in respect of each of LC Trading Accounts                         
    Agreement and Lippo Trading Accounts Agreement in                         
    relation to the aggregate commissions received or to                      
    be received by Lippo Securities and/or Lippo Futures                      
    equals less than 0.1 per cent. Accordingly, whilst                        
    the LC Trading Accounts Agreement and the Lippo                           
    Trading Accounts Agreement will constitute                                
    continuing connected transactions for each of Lippo                       
    and LCR (as applicable), it is exempt from the                            
    reporting, announcement and shareholders approval                         
    requirements set out in the Listing Rules under Rule                      
    14A.33(3) of the Listing Rules and no disclosure is                       
    made in this announcement by either Lippo or LCR in                       
    respect of the LC Trading Accounts Agreement and the                      
    Lippo Trading Accounts Agreement.                                         
                                                                              
    REASONS FOR ENTERING INTO TRADING ACCOUNTS AGREEMENTS                     
    Each of Lippo Cayman, Lippo, LCR and HKBLA and/or                         
    their respective subsidiaries had previously entered                      
    into standard trading accounts agreements with Lippo                      
    Securities and Lippo Futures (as applicable) on                           
    substantially similar terms which were on standard                        
    terms entered into by ordinary customers of Lippo                         
    Securities and Lippo Futures. With the changes to the                     
    Listing Rules coming into effect on 31st March, 2004                      
    and the Stock Exchange's confirmation that such                           
    transactions constituted non-exempt continuing                            
    connected transactions, Rule 14A.35 of the Listing                        
    Rules requires that such transactions be evidenced                        
    by written agreements for a fixed period not exceeding                    
    three years. Accordingly, the Trading Accounts                            
    Agreements were entered into to comply with the                           
    requirements of Rule 14A.35 of the Listing Rules which                    
    will preserve the basis on which each of Lippo Cayman,                    
    Lippo, LCR and HKBLA and/or their respective                              
    subsidiaries will continue to make securities and                         
    futures investments through such trading accounts                         
    operated by Lippo