10:35     GEELY AUTO<00175>-Announcement & Resumption of Trading (2)          

    Connected Transactions will be subject to the requirements of reporting,  
    announcement and approval by the Independent Shareholders at the EGM as   
    set out in Chapter 14A of the Listing Rules.                              
                                                                              
    As the Supply Agreement is independent of the Offer, it is not            
    conditional upon the closing of the Offer. Similarly, the Offer is not    
    conditional upon the approval of the Supply Agreement by the Independent  
    Shareholders at the EGM.                                                  
                                                                              
    DESPATCH OF OFFER DOCUMENT AND THE CIRCULAR                               
                                                                              
    The composite offer document containing the Offer, the acceptance and     
    transfer forms and, among other things, the advice from the independent   
    board committee of the Company and the advice from the independent        
    financial adviser to the independent board committee is expected to be    
    despatched to the Shareholders and the Optionholder within 21 days from   
    the publication of this announcement.                                     
                                                                              
    A circular containing the details of the Supply Agreement, the            
    Continuing Connected Transactions and the Proposed Cap, the advice from   
    the independent board committee of the Company and the advice from the    
    independent financial adviser to the independent board committee will be  
    despatched to the Shareholders within 21 days from the publication of     
    this announcement. Proper Glory and its associates will abstain from      
    voting at the resolution to be proposed at the EGM to approve the Supply  
    Agreement and the Proposed Cap.                                           
                                                                              
    Shareholders of and potential investors in the Company should note that   
    the Offer is a possibility only. Shareholders and potential investors in  
    the Company should therefore exercise extreme caution when dealing in     
    the Shares.                                                               
                                                                              
    SUSPENSION AND RESUMPTION OF TRADING                                      
                                                                              
    At the request of the Company, trading in the Shares on the Stock         
    Exchange was suspended with effect from 2:30 p.m. on 6 May 2005 pending   
    the issue of this announcement. Application has been made by the Company  
    to the Stock Exchange for the resumption of trading in the Shares with    
    effect from 9:30 a.m. on 11 May 2005.                                     
                                                                              
    INTRODUCTION                                                              
                                                                              
    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, for a total  
    cash consideration of HK$153 million. The Offeror holds the remaining     
    32% interest in the issued share capital of Proper Glory. Proper Glory    
    is the existing controlling Shareholder interested in 2,500 million       
    Shares, representing approximately 60.68% in the issued share capital of  
    the Company.                                                              
                                                                              
    The Share Transfer Agreement is conditional upon:                         
                                                                              
    (i)        the general offer obligation arising from the sale and         
    purchase of PG shares having been approved by the SFC;                    
                                                                              
    (ii)        there being no action, omission (including any breaches or    
    non-compliance of the Listing Rules) on the part of the Vendors, Proper   
    Glory and the Company which will result in the Company loosing its        
    listing status on the Stock Exchange or any suspension exceeding 7        
    consecutive trading days (other than any suspension in connection with    
    the clearance by the Stock Exchange or the SFC of any announcements or    
    circular required to be issued by the Company in connection with the      
    transactions contemplated under the Share Transfer Agreement);            
                                                                              
    (iii)        no indication being received that any necessary waivers,     
    consents and approvals (if required) from the relevant governmental or    
    regulatory authorities in Hong Kong, Cayman Islands and the PRC for the   
    implementation of the transaction contemplated under the Share Transfer   
    Agreement not having been obtained; and                                   
                                                                              
    (iv)        the warranties in the Share Transfer Agreement remaining      
    true and accurate in all respects.                                        
                                                                              
    The Offeror may at any time prior to Completion waive condition (iv)      
    above. The Offeror currently has no intention to waive condition (iv)     
    prior to Completion. If any of the conditions has not been fulfilled (or  
    waived by the Purchaser) on or before 30 June 2005, the Share Transfer    
    Agreement shall terminate. In such an event, the share transfer of the    
    PG Shares will not be effected and no unconditional mandatory general