10:34     GEELY AUTO<00175>-Announcement & Resumption of Trading (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.                   
                                                                              
            GEELY GROUP LIMITED        GEELY AUTOMOBILE HOLDINGS LIMITED      
            (incorporated in the British Virgin Islands with limited          
            liability)        (incorporated in Cayman Islands with limited    
                                    liability)                                
                    (Stock code: 175)                                         
                                                                              
    JOINT ANNOUNCEMENT                                                        
                                                                              
    POSSIBLE UNCONDITIONAL MANDATORY GENERAL OFFER                            
    TO BE MADE BY                                                             
                                                                              
    G.K. GOH SECURITIES (H.K.) LIMITED                                        
    ON BEHALF OF                                                              
    GEELY GROUP LIMITED                                                       
    TO ACQUIRE ALL THE ISSUED SHARES IN                                       
    GEELY AUTOMOBILE HOLDINGS LIMITED                                         
    (OTHER THAN THOSE SHARES ALREADY BENEFICIALLY OWNED OR AGREED TO BE       
    ACQUIRED BY                                                               
    GEELY GROUP LIMITED                                                       
    AND PARTIES ACTING IN CONCERT WITH IT),                                   
    AND                                                                       
    CONTINUING CONNECTED TRANSACTIONS                                         
                                                                              
    Financial adviser to Geely Group Limited                                  
                                                                              
    G.K. Goh Securities (H.K.) Limited                                        
                                                                              
    THE POSSIBLE OFFER                                                        
                                                                              
    Reference is made to the announcements made by the Company dated 11       
    January 2005, 7 February 2005, 3 March 2005 and 8 April 2005 relating to  
    the Share Transfer Agreement and the Share Offer.                         
                                                                              
    The Company was notified by the Vendors on 6 May 2005 that they have      
    entered into the Share Transfer Agreement with the Offeror on the same    
    date to dispose to the Offeror 68 PG Shares, representing their entire    
    interest of 68% of the issued share capital of Proper Glory. It is        
    expected that Completion of the Share Transfer Agreement will take place  
    on or before 20 May 2005 or such other date as may be agreed by the       
    parties in writing.                                                       
                                                                              
    As at the date of this announcement, the Offeror was interested in 32%    
    of the issued share capital of Proper Glory, which in turn was            
    beneficially interested in 2,500 million Shares, representing             
    approximately 60.68% of the existing issued share capital of the          
    Company. Upon Completion, the Offeror and parties acting in concert with  
    it will be interested in 2,500 million Shares, representing               
    approximately 60.68% of existing issued share capital of the Company,     
    and under Rule 26 of the Takeovers Code, the Offeror will be obliged to   
    make a mandatory cash offer for all the Shares not already owned by the   
    Offeror or parties acting in concert with it. Following and subject to    
    Completion, G.K. Goh Securities (H.K.) Limited will, on behalf of the     
    Offeror, make a mandatory cash offer on the terms and subject to the      
    conditions referred to in this announcement and to be set out in the      
    Offer Document to acquire all the issued Shares not already owned by the  
    Offeror or parties acting in concert with it at HK$0.09 per Share. The    
    terms of the Offer are set out under the section headed "Possible Cash    
    Offer" below.                                                             
                                                                              
    CONTINUING CONNECTED TRANSACTIONS                                         
                                                                              
    Fulin Guorun, a 51% owned subsidiary of the Company, has been in its      
    usual and ordinary course of business, selling automobile parts and       
    components on normal commercial terms to an associated company of the     
    Company Zhejiang Geely JV. Zhejiang Geely JV is ultimately beneficially   
    owned by Mr. Li and his associates. Fulin Guorun is principally engaged   
    in the manufacturing and trading of automobile parts and components in    
    the PRC.                                                                  
                                                                              
    Upon Completion, Mr. Li will become the ultimate controlling              
    Shareholder, and thus a connected person of the Company. The              
    transactions between Fulin Guorun and Zhejiang Geely JV constitute        
    continuing connected transactions for the Company. The Supply Agreement   
    was entered into by Fulin Guorun with Zhejiang Geely JV to govern the     
    terms of the Continuing Connected Transactions for the period from the    
    date of approval of the Supply Agreement by the Independent Shareholders  
    at the EGM to 31 December 2007. As the amount of the Continuing           
    Connected Transactions on annual basis is expected to exceed the 2.5%     
    threshold stated in Rule 14A.34 of the Listing Rules, the Continuing