09:27 TIANJIN DEV<00882> - 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. TIANJIN DEVELOPMENT HOLDINGS LIMITED (Incorporated in Hong Kong SAR with limited liability under the Hong Kong Companies Ordinance) (Stock Code: 882) CONNECTED TRANSACTION Renewal of the tenancy agreement for leasing of office premises and car parks by Tsinlien Realty Limited to Tianjin Development Holdings Limited Reference is made to the announcement of Tianjin Development Holdings Limited dated 2nd March, 2004 relating to the Previous Tenancy Agreement. The directors of the Company announce that the captioned transaction has been made between the Company and Tsinlien Realty Limited, a wholly-owned subsidiary of Tsinlien Group Company Limited whereas Tsinlien Group Company Limited is the ultimate holding company of the Company. Tsinlien Realty Limited is therefore a connected person of the Company and the captioned transaction constitutes a connected transaction under Chapter 14A of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited. The Office Premises and Car-parks have been leased to the Company on normal commercial terms over six years since 1st August, 1998. As disclosed in the Announcement, the Office Premises and Car-parks were leased to the Company at a monthly rental of HK$370,000 for a period from 1st January, 2004 to 31st December, 2004. Such details will also be disclosed in the annual report of the Company for the year ended 31st December, 2004. The tenancy agreement of the Office Premises and Car-parks was renewed on 21st April, 2005 for a further one year, commencing from 1st January, 2005 to 31st December, 2005, at a monthly rental of HK$370,000. The directors (including independent non-executive directors) of the Company consider that the terms of the Tenancy Agreement are fair and reasonable and in the interests of the shareholders of the Company as a whole and the Tenancy Agreement was negotiated on an arm's length basis and was entered into on normal commercial terms. According to Rule 14A.34 of the Listing Rules, the Company is required to disclose by way of a press announcement and the inclusion of the details of the Tenancy Agreement in the next published annual report and accounts of the Company. Reference is made to the announcement of Tianjin Development Holdings Limited (the ``Company'') dated 2nd March, 2004 (the ``Announcement'') relating to the previous tenancy agreement dated 2nd March, 2004 for leasing of Office Premises and Car-parks (both as defined below) (the ``Previous Tenancy Agreement.'') by the Landlord (as defined below) to the Company. Considering, among another reasons, to avoid any capital expenditure for the relocation of new office premises, the tenancy agreement of the Office Premises and Car-parks (both as defined below) was renewed on 21st April, 2005. The Office Premises and Car-parks (both as defined below) have been leased to the Company on normal commercial terms over six years from 1st August, 1998 to 31st December, 2004. As disclosed in the Announcement, the Office Premises and Car-parks (both as defined below) were leased to the Company pursuant to the Previous Tenancy Agreement at a monthly rental of HK$370,000 for a period from 1st January, 2004 to 31st December, 2004. Such details will also be disclosed in the annual report of the Company for the year ended 31st December, 2004. The tenancy agreement of the Office Premises and Car-parks (both as defined below) (the ``Tenancy Agreement'') was renewed on 21st April, 2005 at a monthly rental of HK$370,000.