10:08     AEON CREDIT<00900> - Announcement (3)                               

    will not exceed HK$20,890,000 (the "Commission Cap")                      
    and HK$16,400,000 (the "Service Cap") respectively.                       
    The Commission Cap has been determined by reference                       
    to the highest annual amount of commissions received                      
    by the Company from AEON Stores during the past three                     
    years to which a cushion of 15% has been added to                         
    provide flexibility to take account of possible                           
    changes in the volume of the Commission Transactions.                     
    The average commission received by the Company from                       
    AEON Stores in the past three years was HK$14,300,000.                    
    The Service Cap has been determined by reference to                       
    the average historical value of HK$8,800,000 paid by                      
    the Company in the past three years and the                               
    anticipated increase in the business volume of the                        
    Company.                                                                  
                                                                              
    It is expected that the applicable percentage ratios                      
    for each of the Commission Transactions and Service                       
    Transactions (the "Transactions") will be less than                       
    2.5%. In accordance with Rule 14A.34 of the Listing                       
    Rules, the Transactions are only subject to the                           
    reporting and announcement requirements under Rules                       
    14A.45 to 14A.47 of the Listing Rules and are exempt                      
    from the independent shareholders' approval. Details                      
    of the Transactions will be included in the Company's                     
    next published annual reports and accounts.                               
                                                                              
    The Company will comply with the continuing                               
    obligations under Rules 14A.37 to 14A.41 of the                           
    Listing Rules and will re-comply with the relevant                        
    Listing Rules if the Commission Cap or the Service                        
    Cap is exceeded, when the Master Agreement or the                         
    Service Agreement is renewed and when there is a                          
    material change to its respective terms.                                  
                                                                              
    REASONS FOR ENTERING INTO THE TRANSACTIONS                                
                                                                              
    The directors of the Company, including the                               
    independent non-executive directors, are of the view                      
    that the Transactions, the Master Agreement and the                       
    Supplemental Agreement have been entered into in the                      
    ordinary and usual course of business of the Company,                     
    on normal commercial terms, negotiated on an arm's                        
    length with reference to the prevailing market                            
    conditions, and are fair and reasonable and in the                        
    interests of the Company and its shareholders as a                        
    whole. The directors of the Company, including the                        
    independent non-executive directors, consider it to                       
    be in the interests of the Company to continually                         
    engage in the Transactions as they are beneficial to                      
    the business and profitability of the Company.                            
                                                                              
    GENERAL                                                                   
                                                                              
    The Company is principally engaged in the provision                       
    of consumer credit finance services, which include                        
    the issuance of credit cards, the provision of vehicle                    
    financing, hire purchase financing and personal loan                      
    financing.                                                                
                                                                              
    AEON Stores, a company listed on The Stock Exchange                       
    of Hong Kong Limited, is principally engaged in the                       
    operation of general merchandise stores.                                  
                                                                              
    AEON Shenzhen, a company established in the People's                      
    Republic of China, is principally engaged in the                          
    provision of call center services.                                        
                                                                              
                                                                              
    By order of the Board                                                     
    Masanori Kosaka                                                           
    Managing Director                                                         
    Hong Kong, 20th April 2005                                                
                                                                              
    As at the date of this announcement, the executive                        
    directors of the Company are Mr. Masanori Kosaka