10:30     HERITAGE INT'L<00412> - Announcement & Resumption (5)               

    Shares                                                                    
    27         27         Rights     Shareholde Approximat                    
    October    October    Issue      rs         ely 23.5                      
    2004       2004                             million                       
    2,099,995, 32.00%     Investment acquisitio Not                           
    578                    in        n of       applicable                    
    Shares                commercial properties                               
                                                                              
                          properties                                          
    20         18         Issue of   Collier    Approximat                    
    December   December   New                   ely                           
    2004       2004       Shares                HK$29.12                      
                                                million                       
    728,000,00 9.99%      acquisitio approximat Not                           
    0                     n of       ely HK$22  applicable                    
    Shares                properties million                                  
                                     is                                       
                                     intended                                 
                                     to be                                    
                                     used to                                  
                                     acquire a                                
                                     residentia                               
                                     l                                        
                                     property                                 
                                     in Hong                                  
                                     Kong and                                 
                                     the                                      
                                     balance                                  
                                     is to be                                 
                                     retained                                 
                                     for                                      
                                     future                                   
                                     investment                               
    25         24         Issue of   Found      Approximat                    
    January    January    Convertibl Macau and  ely 95                        
    2005       2005       e          independen million                       
                          Notes      t third                                  
                                     parties                                  
    None yet   N/A        approximat applied    Not                           
                          ely        for        applicable                    
                          HK$38m to  intended                                 
                          redeem     use                                      
                          Convertibl                                          
                          e Note                                              
                          issued on                                           
                          15 April                                            
                          2004,                                               
                          HK$50m to                                           
                          fund part                                           
                          of the                                              
                          loan to                                             
                          Found                                               
                          Macau and                                           
                          the                                                 
                          balance                                             
                          for                                                 
                          general                                             
                          working                                             
                          capital                                             
                                                                              
                                                                              
                                                                              
    SHARE CONSOLIDATION                                                       
    It is proposed that, subject to the conditions set out below, every       
    ten (10) Shares in the issued and unissued ordinary share capital of      
    the Company will be consolidated into one (1) Consolidated Share of       
    HK$0.10.                                                                  
                                                                              
    As at the date of this Announcement, there were 11,888,994,134            
    Shares in issue. On the basis of such issued share capital and taking     
    into account the issue of new Shares under the Placing Agreement,         
    there will be 1,688,899,413 Consolidated Shares in issue following        
    the Share Consolidation (assuming that there are no changes in the        
    share capital of the Company except for the issue of the Placing          
    Shares, from the date of this Announcement and up to the effective        
    date of the Share Consolidation).                                         
                                                                              
    Conditions of the Share Consolidation                                     
    The Share Consolidation will be conditional upon:-                        
    (i)                                                                       
    the passing at the SGM of an ordinary resolution approving the Share      
    Consolidation;                                                            
                                                                              
    (ii)                                                                      
    the Listing Committee of the Stock Exchange granting listing of, and      
    permission to deal, in the Consolidated Shares and the Consolidated       
    Shares falling to be issued upon exercise of the conversion rights        
    attaching to the Convertible Notes and the subscription rights            
    attaching to the Share Options.                                           
                                                                              
    REASONS FOR THE SHARE CONSOLIDATION                                       
    As the proposed Share Consolidation will increase the nominal value       
    of the shares of the Company and it is expected that the trading          
    price of the shares of the Company will also increase, the Directors