10:57 HSIN CHONG CONS<00404> & SYNERGIS HOLD<02340> - J. Ann. (1) The Stock Exchange of Hong Kong Limited takes no responsibility for the contents of this announcement, makes no representation as to its accuracy or completeness and expressly disclaims any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. HSIN CHONG CONSTRUCTION GROUP LTD. (Incorporated in Bermuda with Limited Liability) (Stock Code: 0404) Synergis Holdings Limited (Incorporated in Bermuda with limited liability) (Stock Code: 2340) JOINT ANNOUNCEMENT CONTINUING CONNECTED TRANSACTIONS The respective Boards of Directors of HCCG and Synergis announced that Deventer, a subsidiary of HCCG and as the landlord, entered into the Tenancy Agreement I with SMS, a subsidiary of Synergis and as the tenant on 1st April, 2005. The Board of Directors of HCCG announced that Deventer as the landlord also entered into the Tenancy Agreement II and Tenancy Agreement III with HCH and Summit as the tenants respectively on 1st April, 2005. SMS, HCH and Summit are the associates of HCIH, a substantial shareholder of HCCG, therefore, SMS, HCH and Summit are connected persons of HCCG within the meaning of Rule 14A.11 of the Listing Rules. HCIH, the controlling shareholder of Synergis, together with shareholders of HCIH collectively hold more than one-third of indirect interest in Deventer, therefore, Deventer is a connected person of Synergis within the meaning of Rule 14A.11 of the Listing Rules. Accordingly, the transaction contemplated under the Tenancy Agreement I constitutes a connected transaction for both HCCG and Synergis under Rule 14A.13 of the Listing Rules. The transactions contemplated under the Tenancy Agreement II and III also constitute connected transactions for HCCG under Rule 14A.13 of the Listing Rules. The annual rent, management fee, air-conditioning fee, licencing fee and other outgoings under the Tenancy Agreement I, II and III do not exceed HK$10 million and 2.5% of each of the appropriate percentage ratios (other than the profits ratio) defined under the Listing Rules in the context of Synergis (for Tenancy Agreement I) and HCCG (for Tenancy Agreements I, II and III) respectively, it is subject to the disclosure requirements under Rule14A.34 of the Listing Rules and particulars of the Tenancy Agreement I, II and III will be included in each of the subsequent published annual reports of HCCG and Synergis for the financial years ending 31st March, 2008 respectively as appropriate in accordance with the Rules 14A.45 and 14A.46 of the Listing Rules. TENANCY AGREEMENT I DATED 1ST APRIL, 2005 Landlord : Deventer Tenant : SMS Premises : A portion of Hsin Chong Center, 107!V109 Wai Yip Street, Kwun Tong, Kowloon, Hong Kong, totaling 17,245 square feet of gross floor area and 11 car parking spaces Term : From 1st April, 2005 to 31st March, 2008 (both days inclusive) Monthly Rental : HK$128,302.80 exclusive of management fee, air-conditioning fee, licencing fee and other outgoings, fixed over the term of the Tenancy Agreement I Payment Terms : Monthly rent will be payable by cash on the first day of each calendar month Deposit Received : HK$384,218.60 TENANCY AGREEMENT II DATED 1ST APRIL, 2005 Landlord : Deventer Tenant : HCH Premises : A portion of Hsin Chong Center, 107!V109 Wai Yip Street, Kwun Tong, Kowloon, Hong Kong, totaling 1,887 square feet of gross floor area Term : From 1st April, 2005 to 31st March, 2008 (both days inclusive) Monthly Rental : HK$14,039.28 exclusive of management fee, air-conditioning fee and other outgoings, fixed over the term of the Tenancy Agreement II Payment Terms : Monthly rent will be payable by cash on the first day of each calendar month Deposit Received : HK$42,042.36