11:21     HK CONSTRUCTION<00190> - Announcement (1)                           

    The Stock Exchange of Hong Kong Limited takes no                          
    responsibility of the contents of this announcement,                      
    make not 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.                                                     
                                                                              
                                                                              
    HONG KONG CONSTRUCTION (HOLDINGS) LIMITED                                 
    (Incorporated in Hong Kong with limited liability)                        
    Web site: www.hkconstruction.com                                          
    (Stock Code: 190)                                                         
                                                                              
    DISCLOSEABLE TRANSACTION                                                  
    FOR                                                                       
    INVESTMENT IN                                                             
    ASIA WIND POWER (MUDANJIANG) COMPANY LIMITED                              
    AND                                                                       
    HONG KONG WIND POWER (MULING) COMPANY LIMITED                             
                                                                              
    The Board wishes to announce that pursuant to the                         
    Equity Transfer Agreements both dated 29 March 2005,                      
    the Company through Sinoriver, its wholly-owned                           
    subsidiary, agreed to acquire from the Transferor:                        
                                                                              
    (a)     29% of the registered capital of Project Company                  
    I; and                                                                    
                                                                              
    (b)     75% of the registered capital of Project Company                  
    II.                                                                       
                                                                              
    Under the Equity Transfer Agreement I, the Transferor                     
    has also agreed to transfer 51% of the registered                         
    capital of Project Company I to APC, a subsidiary of                      
    Asia Power Corporation Limited which is listed on the                     
    Singapore Exchange Securities Trading Limited. The                        
    remaining 20% equity interest of Project Company I                        
    and 25% equity interest of Project Company II will                        
    remain to be held by the Transferor.                                      
                                                                              
    Pursuant to the MOU, Sinoriver has granted the Option                     
    in favour of APC whereby APC can, within 3 months after                   
    completion of capital contribution to Project Company                     
    II, require Sinoriver to sell to APC 10% of the                           
    registered capital of Project Company II held by                          
    Sinoriver after completion of Equity Transfer                             
    Agreement II at a price equal to the amount of capital                    
    contribution actually made by Sinoriver to such 10%                       
    registered capital plus interest at the rate of 6%                        
    per annum.                                                                
                                                                              
    Since no capital contribution was or will be made to                      
    any of the Project Companies by the Transferor prior                      
    to completion of the Equity Transfer Agreements, no                       
    consideration is payable by Sinoriver for the                             
    acquisition of 29% in the registered capital of                           
    Project Company I and 75% in the registered capital                       
    of Project Company II.                                                    
                                                                              
    However, after the shareholders of the respective                         
    Project Companies have made their respective capital                      
    contributions in accordance with their proportionate                      
    equity holdings, each of Project Company I and Project                    
    Company II will reimburse the Transferor for the costs                    
    and expenses already incurred and/or to be incurred                       
    by the Transferor on behalf of the relevant Project                       
    Companies for Project (Phase I) and Project (Phase                        
    II), being about HK$38 million for each of the                            
    Projects, that is, a total of about HK$76 million.                        
    Such amount will be subject to further verification                       
    by Sinoriver and APC.