11:00     K. WAH INT'L<00173>K. WAH CONS<00027>-Joint Ann & Resumed-3         

    There are 951,900 Galaxy Shares in issue. Of these, 95,190 (10%)          
    are Galaxy A Shares, which carry full voting rights but only a            
    negligible economic interest in Galaxy. The remaining 856,710 (90%)       
    of the Galaxy Shares are Galaxy B Shares, which carry full voting         
    rights and effectively 100% of the economic interest in Galaxy.           
    The Acquisition is only of Galaxy B Shares. Please see the                
    subsection headed ``Capital structure of Galaxy'' in the section          
    headed ``C. Information on Galaxy'' for more information on the           
    Galaxy Shares.                                                            
                                                                              
    The acquisition of Galaxy by KWCM includes the Concession, all            
    existing and future casinos operating under the Concession (other         
    than those operated under the sub-concession granted to Venetian          
    Macau, S.A. referred to below) and their businesses and management.       
    Galaxy will be the entity responsible for the gaming assets and           
    day-to-day operations for the casinos including managing employee         
    payrolls, utilities, government returns and filings, tax                  
    liabilities, security, marketing and promotion, compliance with           
    relevant laws and regulations, appointment of promoters and other         
    service providers and sub-contractors.                                    
                                                                              
    For the diagrams illustrate the corporate and shareholding                
    structure (economic interests only, taking no account of                  
    100%-owned intermediate holding companies) of KWIH and KWCM before        
    Completion and of KWIH, KWCM and Galaxy immediately after                 
    Completion, please refer to the press announcement today.                 
                                                                              
    The Acquisition Agreement                                                 
                                                                              
    Set out below is a summary of the principal terms of the Acquisition      
    Agreement:                                                                
                                                                              
    Date:                                                                     
    14th March, 2005 (amended on 1st April, 2005)                             
                                                                              
    Parties to the Acquisition Agreement:                                     
    1.   (a) The Family Companies consisting of City Lion (100% owned         
    by the Principal Trust), Netfinity (100% owned by Mr. Lawrence Lui)       
    and Recurrent Profits (100% owned by Mr. Francis Lui), and (b) the        
    Minority Vendors consisting of Brightwealth (100% owned by Guoco          
    Group Limited, a company listed on the Stock Exchange) and Future         
    Leader (100% owned by Mr. Pedro Ho), (the Minority Vendors being          
    Independent Third Parties save as disclosed in this announcement)         
    as Vendors --- see section M ``Information on the Vendors'';              
                                                                              
    2.   Canton Treasure, a wholly-owned subsidiary of KWCM, as               
    purchaser; and                                                            
                                                                              
    3.   KWCM, as guarantor of the obligations of the purchaser.              
                                                                              
    At the date of this announcement, KWIH, the Trusts, Dr. Lui and           
    his spouse hold a total of 943,156,170 KWCM Shares, representing          
    about 72.71% of the voting rights in KWCM.                                
                                                                              
    Subject matter of purchase:                                               
    Canton Treasure agreed conditionally to acquire the Galaxy Equity         
    Interest at the Purchase Price. The Galaxy Equity Interest, which         
    is a 97.9% economic interest in Galaxy, carrying 88.1% of the             
    voting power in Galaxy, is currently held by Family Companies and         
    the Minority Vendors. It is constituted by 838,719 Galaxy B Shares.       
    Further information about Galaxy and the breakdown of the                 
    consideration is set out below.                                           
                                                                              
    Consideration:                                                            
    The Purchase Price is HK$18,405,198,023, which will be satisfied          
    (i) as to about 80% by the allotment and issue of 1,840,519,798           
    Consideration KWCM Shares to the Vendors credited as fully paid           
    at HK$8.00 per KWCM Share and (ii) as to about 20%, by the issue          
    to the Vendors of HK$3,681,039,603 principal amount of FRNs or,           
    at the sole discretion of KWCM, by FRNs and/or cash. Further              
    details are set out below.                                                
                                                                              
    At the agreed issue price of HK$8.00 per share, the value of              
    Consideration KWCM Shares is HK$14,724,158,384. The market value          
    of the Consideration KWCM Shares (based on the closing price per          
    KWCM Share of HK$8.50 on the Last Dealing Date) is                        
    HK$15,644,418,283.