09:30     JIANGSU EXPRESS<00177> - Announcement (2)                           

                         to the approved fee  to the approved fee             
                         principles**.        principles**.                   
                                                                              
     (i) Advance part             40% of the estimated maintenance            
    payment                       fee, payable in the week                    
                                  immediately before  commencement            
                                  of relevant  maintenance work               
                                  for the raw materials of the                
                                  maintenance work.                           
                                                                              
    (ii) Maintenance              - Payable within the period                 
    fee                             commencing the 11th and                   
    payment                         ending on 20th  calendar day              
                                    of the month immediately                  
                                    after the respective of work done;        
                                  - cumulative  payment shall not             
                                    exceed 95% of the estimated maximum       
                                    maintenance fee  (inclusive of the        
                                    advance payment);                         
                                  - upon completion of the maintenance        
                                    work and passing  the quality check,      
                                    payment of 95% of  the actual             
                                    maintenance fee (inclusive of the         
                                    advance payment);                         
                                  - balance of 5% to be paid after the 1      
                                    year quality  warranty period.            
                                                                              
    * The amount of work to be designated to Jiangsu Sundian will depend      
    on the condition of the road surface and the relevant work progress.      
                                                                              
    ** For works which have to be awarded by way of tender pursuant to the    
    relevant PRC laws and regulations (for contracts with value of over       
    RMB2,000,000 (approximately HK$1,886,792)), Jiangsu Sundian will only     
    be awarded work after completion of the relevant tender process. In       
    respect of works awarded by tender, services fees will be based on        
    the tender submitted. In respect of other works, the fee will be          
    fixed with reference to confirmation by independent (not being            
    connected persons (as defined under the Hong Kong Listing Rules) of       
    the Company) qualified price quoting entities as to the then              
    prevailing market price of the relevant work.                             
                                                                              
    Reasons and Benefits of the Maintenance Contracts                         
                                                                              
    The principal business of the Company is the construction and             
    management of toll roads and expressways in Jiangsu Province. The         
    principal business of Guangjing Xicheng is the management, operation      
    maintenance and toll collection of Guangjing Expressway and Xicheng       
    Expressway. The principal business of Jiangsu Sudian is the repair        
    and maintenance of expressway.                                            
                                                                              
    Jiangsu Sudian has accumulated sufficient related experience in the       
    general repairs and maintenance work of expressways. Since its            
    establishment, Jiangsu Sudian has, in addition to contracting for the     
    maintenance operations and major and medium repairs of the                
    expressways, roads and bridges under the management of the promoters,     
    expanded its market by contracting for the road projects of other         
    parties, including the paving of road surfaces of highways, the           
    installation of securities facilities and other maintenance projects,     
    and therefore optimising its allocation of resources, increasing its      
    asset utilitisation rate, enhancing its maintenance technology as         
    well as the quality of its maintenance work. It has achieved              
    economies of scale of maintenance, reducing the maintenance costs of      
    highways in an effective manner and thereby increasing its economic       
    benefits further.                                                         
                                                                              
    The maintenance fees are determined after arm's length negotiation        
    and with reference to the price confirmed by independent qualified        
    price quoting entities or at the tendered price, as the case may be.      
    For so long as the price is not higher than the prevailing market         
    price of the relevant work, Jiangsu Sudian will be awarded the            
    specified works provided that the aggregate contract sum does not         
    exceed the maximum management services fee for 2005 as set out in the     
    respective agreement. The maximum maintenance service fees are agreed     
    upon after taking into account the expected amount of works to be         
    done in 2005. The Company will monitor the situation and will not         
    order service if the limit is exceeded. The maintenance service fee       
    will be funded by the internal resources of the Company and Guangjing     
    Xicheng respectively.                                                     
                                                                              
    At the 11th Session Meeting of the Fourth Board of Directors held on      
    22 April 2005, the directors of the Company have approved the             
    entering into of the Maintenance Contracts. The directors of the          
    Company (including independent non-executive directors save for Mr.       
    Hong Yin Xing who has tendered his resignation and accordingly has        
    not expressed an opinion) are of the view that the entering into of       
    the Maintenance Contracts is in the interests of the shareholders of      
    the Company as a whole and in the ordinary and usual course of            
    business of the relevant company and the terms of the Maintenance         
    Contracts are on normal commercial terms.                                 
                                                                              
    Continuing Connected Transaction                                          
                                                                              
    Jiangsu Sundian is a 70% direct subsidiary of the Company and is