09:35     CHEUNG KONG<00001> & HUTCHISON<00013>-Joint Announcement(2)         

    The Consideration for the Acquisition, before any adjustment,             
    is HK$880,000,000 which is arrived after arm's length                     
    negotiations between the parties. If the Condition shall not              
    be fulfilled on or before 30th September, 2005, either (i) the            
    Consideration shall be reduced by the sum of HK$384,255,000 if            
    Clevinger, in its sole and absolute discretion, decides to waive          
    such Condition; or (ii) the Sale and Purchase Agreement will              
    terminate 10 business days after such deadline. Further, at               
    Completion, the Consideration will be adjusted by adding thereto          
    an amount equal to all assets of the Target Group as shown in             
    the Completion Accounts (other than the Property and other real           
    properties) and deducting therefrom all liabilities of the                
    Target Group as shown in the Completion Accounts (which                   
    liabilities shall include the Relevant Sums but shall exclude             
    the Debt). Clevinger has paid an aggregate amount of                      
    HK$88,000,000 in cash as deposit and part payment of the                  
    Consideration which is refundable upon termination of the Sale            
    and Purchase Agreement mentioned in (ii) above. The balance of            
    the Consideration will be paid on Completion.                             
                                                                              
    The obligations of Clevinger under the Sale and Purchase                  
    Agreement including the payment of the Consideration are                  
    guaranteed by CKH and HIL on a 50/50 several basis. It is expected        
    that the Consideration will be funded by CKH and HIL in proportion        
    to their indirect 50/50 interest in Clevinger from internal               
    resources.                                                                
                                                                              
    The deposit paid was funded from CKH's and HIL's internal                 
    resources on a pro-rata basis in proportion to their indirect             
    50/50 interest in Clevinger. It is expected that the balance              
    of the Consideration payable for the Acquisition will be funded           
    by CKH and HIL on a similar basis.                                        
                                                                              
    INFORMATION OF THE TARGET GROUP AND THE PROPERTY                          
                                                                              
    Harvest is the holding company of Golden Flag which is the                
    registered owner of, inter alia, the Property. Golden Flag has            
    accepted the terms of offer from the Government to surrender              
    to the Government the Property                                            
    in exchange for the regrant of the Property to be granted under           
    the New Land Grant. The book value of the properties under                
    development based on the unaudited consolidated balance sheet             
    of the Target Group as at                                                 
    28th February, 2005 provided by the Vendor is HK$495,453,389.             
                                                                              
    The shareholder's deficit of the Target Group based on the                
    unaudited consolidated balance sheet of the Target Group as at            
    28th February, 2005 provided by the Vendor is HK$40,690,229.              
                                                                              
    REASONS FOR THE TRANSACTION                                               
                                                                              
    The principal activities of the CKH Group are investment holding,         
    property development and investment, hotel and serviced suite             
    operation, property and project management and investments in             
    securities.                                                               
                                                                              
    The HWL Group operates and invests in five core businesses: ports         
    and related services; telecommunications; property and hotels;            
    retail and manufacturing; and energy, infrastructure, finance             
    and investments.                                                          
                                                                              
    The acquisition of the Target Group holding the Property is               
    consistent with one of the core business strategies for both              
    CKH and HWL. CKH and HWL have worked together on various joint            
    venture projects in the past and these previous experience of             
    working together successfully made the CKH Group and the HWL              
    Group the most suitable partner of each other.                            
                                                                              
    CONNECTED TRANSACTION