09:33     CHEUNG KONG<00001> & HUTCHISON<00013> - Joint Ann. (2)              

    mentioned above. The balance of the Consideration will be payable         
    by instalments.                                                           
                                                                              
    The deposit has been funded, and the balance of the Consideration         
    is expected to be funded, by CKH and HWL in proportion to their           
    indirect 50/50 interest in CIS from internal resources.                   
                                                                              
    On 13 May, 2005, the Vendor and the Purchaser have also entered           
    into the Profit Participation Agreement pursuant to which the             
    Purchaser will pay, and the Vendor will receive (i) the                   
    Additional Payment which is of an amount determined in accordance         
    with a pre-agreed formulation set forth therein based, inter              
    alia, on any additional area over which planning permission               
    comprising private residential housing is obtained prior to the           
    prescribed deadline; and (ii) the Net Consideration Payment               
    which is of an amount determined by reference to the net                  
    consideration derived from any sale, other than an intra-group            
    sale, of the whole or part of the Property or of shares of CIS            
    effected within twelve months after the date of Completion.               
                                                                              
    INFORMATION OF THE PROPERTY                                               
                                                                              
    The Property is currently partly used for warehousing. CIS                
    intends to redevelop the same for a mixed residential and                 
    commercial use scheme.                                                    
                                                                              
    REASONS FOR THE TRANSACTION                                               
                                                                              
    The principal activities of the CKH Group are investment holding,         
    property development and investment, hotel and serviced suite             
    operation, property and project management and investments in             
    securities.                                                               
                                                                              
    The HWL Group operates and invests in five core businesses: ports         
    and related services; property and hotels; retail and                     
    manufacturing; energy, infrastructure, finance and investments;           
    and telecommunications.                                                   
                                                                              
    The addition of the Property to the landbank for development              
    into residential and commercial properties is consistent with             
    one of the core business strategies for both CKH and HWL.                 
                                                                              
    CONNECTED TRANSACTION                                                     
                                                                              
    HWL is a substantial shareholder of certain subsidiaries of CKH           
    and hence is a connected person of CKH within the meaning of              
    the Listing Rules. CKH is a substantial shareholder of HWL and            
    hence is a connected person of HWL within the meaning of the              
    Listing Rules. CIS is an associate of each of CKH and HWL and             
    thus a connected person of CKH and HWL within the meaning of              
    the Listing Rules.                                                        
                                                                              
    The financial assistance provided or to be provided by each of            
    CKH and HWL to CIS by way of their respective contributions to            
    the Consideration and any Additional Payment on an unsecured              
    basis and on normal commercial terms in proportion to their 50/50         
    interest in CIS constitutes or will constitute a connected                
    transaction for each of CKH and HWL under Listing Rule 14A.13(2).         
    As the relevant percentage ratios represented by the estimated            
    aggregate of such contribution amount for each of CKH and HWL             
    are more than 0.1% but less than 2.5%, such provision of financial        
    assistance is according to Listing Rule 14A.66(2) exempt from             
    the independent shareholders' approval requirements and is                
    subject to the reporting and announcement requirements set out            
    in Listing Rules 14A.45 to 14A.47.                                        
                                                                              
    GENERAL