11:27     MORNING STAR<00542> - Announcement & Resumption of Trading-3        

    taxation and extraordinary items        HK$1,489                          
            HK$10,696                                                         
                                                                              
    The unaudited consolidated net asset value for the                        
    year ended 31 December 2004 is approximately GBP29.07                     
    million (approximately HK$427.91 million) and the                         
    audited consolidated net asset value for the year                         
    ended 31 December 2003 is GBP28.34 million                                
    (approximately HK$417.24 million), respectively.                          
                                                                              
    PROCEEDS FROM THE DISPOSAL                                                
    The Group intends to place the proceeds of                                
    GBP11,270,000 (approximately HK$165,894,400) from the                     
    Disposal into an interest bearing deposit account on                      
    a short term basis with a licensed bank in Hong Kong.                     
    The Company has no intention currently in relation                        
    to any specific target of acquisition.                                    
                                                                              
    INFORMATION OF THE GROUP                                                  
    The principal activities of the Group are provision                       
    of travel and travel-related services, hotel                              
    investment and management, property development and                       
    property agency services as well as provision of                          
    financial services and securities broking.                                
                                                                              
    FINANCIAL EFFECT OF AND REASON FOR THE DISPOSAL                           
    The Company acquired the Sale Shares in 2001 and 2004                     
    with the objectives then to expand its network of                         
    hotel operations into Europe and invest into a profit                     
    generating hotel business with a prime strategic                          
    location in London. After the Disposal, the Group will                    
    cease to have any hotel operations in Europe for the                      
    time being. Since 2001, the Sterling Pound has                            
    strengthened by more than 30% against the Hong Kong                       
    Dollar. The Disposal represents a good opportunity                        
    for the Company to realize this potential exchange                        
    gain. As at 31 December 2004, the carrying value of                       
    the Company's investment in POHP amounted to                              
    approximately HK$121.91 million (being the latest                         
    date to which the audited accounts of the Group were                      
    drawn up).                                                                
                                                                              
    The investment in POHP constitutes only part of the                       
    Group's investments and the Group still maintains                         
    sufficient and significant level of operations and                        
    sizeable assets through its principal activities, i.e.                    
    provision of travel and travel-related services,                          
    hotel management, property development and property                       
    agency services as well as provision of financial                         
    services and securities broking business. For the                         
    financial year ended 31 December 2004, the turnover                       
    and gross profit of the Group were approximately                          
    HK$494.66 million and HK$63.01 million respectively.                      
                                                                              
    Based on the above, the Directors consider that the                       
    Disposal is fair and reasonable and is in the best                        
    interest of the Company and Shareholders.                                 
                                                                              
    GENERAL                                                                   
    The Disposal constitutes a very substantial disposal                      
    transaction for the Company under Chapter 14 of the                       
    Listing Rules. Pursuant to Rule 14.49 of the Listing                      
    Rules, the Disposal is conditional upon approval by                       
    the Shareholders at the EGM. The Purchaser and their                      
    ultimate beneficial owners are, to the best of the                        
    Directors' knowledge, information and belief, after                       
    making all reasonable enquiries, Independent Third                        
    Parties and none of the Directors, chief executive                        
    or substantial shareholders of the Company and its                        
    subsidiaries and associates of any of them has any                        
    interest, other than through their interest in the                        
    Company, in the Disposal. No Shareholder is required                      
    to abstain from voting in respect of the proposed                         
    resolution