09:23     LAI SUN DEV<00488> - Announcement (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.                   
                                                                              
    Lai Sun Development                                                       
    Lai Sun Development Compamy Limtied                                       
    (Incorporated in Hong Kong with limited liability)                        
    (Stock Code: 488)                                                         
                                                                              
    ANNOUNCEMENT                                                              
    DISCLOSEABLE TRANSACTION                                                  
                                                                              
    SALE OF INTEREST IN FURAMA RESORT                                         
    IN DANANG, VIETNAM                                                        
                                                                              
                                                                              
    The Directors are pleased to announce that Furama Hotel Enterprises       
    Limited (FHEL) and Transformation International Limited (TIL), two        
    wholly owned subsidiaries of the Company, have agreed to sell the entire  
    issued share capital of Furama International Hoteliers Limited (FIHL) to  
    Vina Investment Group Ltd. (Vina).                                        
                                                                              
    The Sellers are the beneficial owners of the entire issued share capital  
    of FIHL which indirectly owns a 62.63% interest in the capital            
    contribution of Indochina Beach Hotel Joint Limited (IBHJV), which owns   
    the Furama Resort in Danang, Vietnam.                                     
                                                                              
    FHEL and TIL (the Sellers) have also agreed to assign the Shareholder     
    Debt and procure the assignment of the Outstanding Fee to Vina. The Sale  
    and Purchase Agreement also provides for Furama Hotels and Resorts        
    International Limited (FHRI), a wholly owned subsidiary of the Company,   
    to continue to manage the Furama Resort for two years after Closing.      
                                                                              
    The Company has unconditionally and irrevocably guaranteed to Vina as a   
    continuing obligation the proper and punctual performance by the Sellers  
    of all their obligations under the Sale and Purchase Agreement and        
    related Transaction Documents.                                            
                                                                              
    The Transaction constitutes a discloseable transaction for the Company    
    under rule 14.06(2) of the Listing Rules.                                 
                                                                              
    The Circular containing, amongst others things, further details of the    
    Transaction will be sent to shareholders of the Company within 21 days    
    of the date of publication of this announcement.                          
                                                                              
    I.        INTRODUCTION                                                    
                                                                              
    The Directors are pleased to announce that the Sellers have agreed to     
    sell the entire issued share capital of FIHL to Vina. The Sellers have    
    also agreed to assign the Shareholder Debt and procure the assignment of  
    the Outstanding Fee to Vina. The Sale and Purchase Agreement provides     
    for FHRI to continue to manage the Furama Resort for two years after      
    Closing, as further described in the section entitled "Management         
    Extension" below.                                                         
                                                                              
    The Transaction constitutes a discloseable transaction for the Company    
    under rule 14.06(2) of the Listing Rules. The Circular containing,        
    amongst others things, further details of the Transaction will be sent    
    to shareholders of the Company within 21 days of the date of publication  
    of this announcement.                                                     
                                                                              
    II.        THE SALE AND PURCHASE AGREEMENT                                
                                                                              
    Date of the Agreement:        8 April 2005                                
                                                                              
    Parties:        1.        FHEL and TIL as Sellers;                        
                                                                              
            2.        Company as Guarantor;                                   
                                                                              
            3.        Vina as purchaser; and                                  
                                                                              
            4.        FHRI.                                                   
                                                                              
    To the best of the knowledge, information and belief of the Directors     
    having made all reasonable enquiries, Vina and its ultimate beneficial    
    owners are third parties independent of the Company and its connected     
    persons (as defined in the Listing Rules).                                
                                                                              
    The following is a summary of the principal terms and conditions of the   
    Sale and Purchase Agreement.                                              
                                                                              
    Assets being disposed