10:18 TAI PING CARPET<00146> - Announcement (3) obliged to supply any Products and Services ordered if the fulfilment of such an order would result in the Company exceeding de minimis levels referred to in rule 14A.34 of the Listing Rules. As a result, the Company is only subject to the reporting and announcement requirements set out in rules 14A.45 to 14A.47 of the Listing Rules in respect of the Supply of Products and Services Agreement. If for any reason these levels are exceeded, the Company will comply with its obligations under the Listing Rules including the requirement to seek independent shareholder approval for such transactions. REASONS FOR AND BENEFITS OF THE CONTINUING CONNECTED TRANSACTIONS The Continuing Connected Transactions allow the Tai Ping Group to continue to supply Products and Services on normal commercial terms to the HSH Group for use in their prestigious hotels and commercial and residential properties. The Directors of the Company believe the terms of the transaction are fair and reasonable and in the interests of the Shareholders as a whole. GENERAL The Tai Ping Group is principally engaged in the sale of furnishing products such as carpets, rugs, furniture, interior furnishings, soft furnishings, antiques, lights, electrical home appliances, ceramics, home accessories and decorative items. The HSH Group is principally engaged in the ownership and management of prestigious hotels, commercial and residential property in key destinations in Asia and the USA. It is the owner and operator of The Peninsula Hotels. As at the date of this announcement, the directors of the Company are Chairman: Mr James S Dickson Leach, Honorary Life President: Mr Anthony Y C Yeh, Chief Executive Director: Mr James H Kaplan, Executive Director: Ms Alison S Bailey, Independent Non-executive Directors: Mr Michael T H Lee, Mrs Yvette Y H Fung, Mr Lincoln C K Yung, Non-executive Directors: Mr Ian D Boyce, Mr John J Ying, Mr Kent M C Yeh, Mr Nicholas T J Colfer, Mr Lincoln K K Leong, Alternate Directors: Mr Nelson K F Leong (Alternate to Mr Lincoln K K Leong), Mr David C L Tong (Alternate to Messrs James S Dickson Leach, Nicholas T J Colfer and Ian D Boyce). DEFINITIONS "BTCL" Bermuda Trust Company Limited "CITPCL" Carpets International Thailand Public Company Limited, a company incorporated in Thailand, 99% of the shares of which are owned by the Company "Company" Tai Ping Carpets International Limited, a company incorporated in Bermuda with limited liability, the shares of which are listed on the Stock Exchange (Stock Code: 146) "Continuing Connected Transactions" the continuing connected transactions entered into from time to time between the Tai Ping Group and the HSH Group for the provision of Products and Services "HK$" Hong Kong dollars, the lawful currency of the Hong Kong Special Administrative Region, the People's Republic of China "HSH" The Hongkong and Shanghai Hotels, Limited, a company incorporated in Hong Kong with limited liability, the shares of which are listed on the Stock Exchange (Stock Code: 45) "HSH Group" HSH and its subsidiaries "Listing Rules" The Rules Governing the Listing of Securities on the Stock Exchange "Products" carpets, rugs and all forms of floor coverings "SCHCL" Siam Chaophraya Holdings Company Limited, a company incorporated in Thailand, 75% of the shares of which are owned by HSH "Services" installation and transportation of the Products and the provision of related ancillary services "Stock Exchange" The Stock Exchange of Hong Kong Limited "Supply of Products and Services Agreement" the agreement entered into between the Company and HSH in relation to the Continuing Connected Transactions "Tai Ping Group" the Company and its subsidiaries By Order of the Board