09:40 APPLIED INT'L<00519>-Announcement & Resumption of Trading-2 The Heads of Agreement sets out the general terms upon which the parties intend to develop and operate the project and are subject to the execution of final agreements between the parties. Apart from the provisions regarding exclusivity, confidentiality and certain conditions to be included in the final agreements (if any), no provision of the Heads of Agreement is deemed to be binding on the parties. Further announcement will be made by the Company in compliance with the Listing Rules as and when appropriate. The proposed transaction may or may not proceed. Shareholders and potential investors should exercise caution when dealing in the shares of the Company. INFORMATION ON BEEF ISLAND, THE BRITISH VIRGIN ISLANDS AND THE PROJECT According to a feasibility study of the project prepared by Ritz-Carlton Development Planning and Feasibility, the British Virgin Islands, covering a large areas to the northeast of the U.S. Virgin Islands and about 90 miles east of Puerto Rico, comprise around 16 inhabited and more than 40 uninhabited islands and Cays. The principal gateway for airlift to the British Virgin Islands is Beef Island which is connected to Tortola, the main island of the British Virgin Islands, via a road bridge. A US$55 million development of the Beef Island Airport, which included a 300-meter runway extension, enlarge apron and new 4,300 SM terminal building, was completed in early 2004. The feasibility study considers the prospect of the development to be excellent as regards its potential market absorption. Based on the feasibility's review of the site's location, accessibility and physical characteristics and in consideration of the outstanding quality of the environment in which it is situated, the site is given an "A+" rating. The Company has set out its plan regarding the Beef Island development in its interim report 2004. An update on the plan subsequent to the signing of the Heads of Agreement is as follows:- Hotel The proposed Ritz-Carlton on Beef Island, comprising a 120-room resort and 40 condominiums included in a rental pool operated by Ritz Carlton, will be just one component of a large luxury resort and residential real estate project occupying a large part of Beef Island. State-of-the-art Mega Yacht Facility The Trellis Bay has always been the finest location in the Caribbean region for yachting because it is located in the heart of Sir Francis Drake Channel, which is a famous sailing trail in the world. The Group's objective is to develop an important yachting and chartering center with the only state-of-the-art mega yacht facility in the British Virgin Islands. The creation of a marina would be the heart of the development and most of the activities will be concentrated in the Marina Village which consists of shopping arcade, restaurants and bars. 18 holes Jack Nicklaus Signature Champion Golf Course & Club House The Group has invited Mr. Jack Nicklaus to design a Signature Golf Course which will the only Jack Nicklaus Signature Champion golf course in the British Virgin Islands. The plan documents will consist of a general strategy plan, a clearing plan, contour plans, a conceptual golf course drainage plan, a grassing plan, a bunker study plan and a conceptual landscape plan. Golf residence, Marina Village Residence and Ocean View Custom Lots Residence The Group intends to develop various branding residential products, which include a golf residence, marina village residence and ocean view lots residence. The total unit supply will amount to approximately 600 units. RESUMPTION OF TRADING IN SHARES At the request of the Company, trading in the shares of the Company was suspended with effect from 2:30 p.m. on 15th April, 2005. Trading in the shares of the Company will resume with effect from 9:30 a.m. on 20th April, 2005. As at the date of this announcement, the executive Directors are Mr. Hung Kin Sang, Raymond, Ms. Hung Wong Kar Gee, Mimi and Mr. Fang Chin Ping and the independent non-executive Directors are Mr. Soo Hung Leung, Lincoln, Mr. Lo Yun Tai and Mr. Lun Tsan Kau. DEFINITIONS