10:07     AEON CREDIT<00900> - 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.                                                     
                                                                              
                                                                              
    AEON CREDIT SERVICE (ASIA) COMPANY LIMITED*                               
    (Incorporated in Hong Kong with limited liability)                        
    (Stock Code: 900)                                                         
                                                                              
                                                                              
    CONTINUING CONNECTED TRANSACTIONS                                         
                                                                              
    Reference is made to the announcement of the Company                      
    dated 27th August 2004 in relation to the continuing                      
    connected transactions with AEON Stores and AEON                          
    Shenzhen respectively.                                                    
                                                                              
    The Company has entered into an agreement each with                       
    AEON Stores and AEON Shenzhen to comply with the                          
    Listing Rules.                                                            
                                                                              
    BACKGROUND                                                                
                                                                              
    Reference is made to the announcement of AEON Credit                      
    Service (Asia) Company Limited (the "Company") dated                      
    27th August 2004 in relation to the continuing                            
    connected transactions with AEON Stores (Hong Kong)                       
    Co., Limited ("AEON Stores") and AEON Information                         
    Service (Shenzhen) Co., Ltd. ("AEON Shenzhen").                           
                                                                              
    AEON Stores is a non-wholly-owned subsidiary of AEON                      
    Co., Ltd., which is a substantial shareholder of the                      
    Company indirectly interested in approximately                            
    66.22% of the issued share capital of the Company.                        
                                                                              
    AEON Shenzhen is jointly owned by the Company and AEON                    
    Credit Service Co., Ltd., which is a substantial                          
    shareholder of the Company interested in                                  
    approximately 51.94% of the issued share capital of                       
    the Company.                                                              
                                                                              
    AEON Stores and AEON Shenzhen are therefore connected                     
    persons of the Company under the Listing Rules and                        
    the continuing connected transactions with AEON                           
    Stores and AEON Shenzhen constituted connected                            
    transactions for the Company under the Listing Rules.                     
                                                                              
    COMMISSION TRANSACTIONS                                                   
                                                                              
    The Company has been receiving commissions from AEON                      
    Stores in respect of certain purchases made by                            
    customers with the use of certain credit cards issued                     
    by the Company, including AEON JUSCO MasterCard, AEON                     
    JUSCO American Express Credit Card, AEON JUSCO VISA                       
    Card and other co-brand credit cards, and certain                         
    purchases made by customers which are financed by                         
    interest-free hire purchase facilities provided by                        
    the Company ("Commission Transactions").                                  
                                                                              
    In order to comply with Rule 14A.35(1) of the Listing                     
    Rules, the Company entered into an agreement on 15th                      
    April 2005 with AEON Stores for a fixed term of three                     
    years commencing from 15th April 2005 (the "Master                        
    Agreement") to govern all the Commission Transactions.                    
    The Master Agreement may be terminated by either the                      
    Company or AEON Stores prior to the expiry of the fixed                   
    term by giving not less than ninety days' prior                           
    written notice of termination and may be renewed on                       
    such terms and conditions as the Company and AEON                         
    Stores may mutually agree.