09:16     GEELY AUTO<00175> - 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 disclaim 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 (incorporated in the Cayman Islands   
    with limited liability)             Islands with limited liability)       
    (Stock code: 175)                                                         
                                                                              
    JOINT ANNOUNCEMENT                                                        
                                                                              
    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),                                   
    CONTINUING CONNECTED TRANSACTIONS,                                        
    AND                                                                       
    APPOINTMENT OF JOINT INDEPENDENT FINANCIAL ADVISERS                       
                                                                              
    Financial adviser to Geely Group Limited                                  
                                                                              
                                                                              
                                                                              
    G.K. GOH SECURITIES (H.K.) LIMITED                                        
                                                                              
    The Board wishes to announce that the Share Transfer Agreement was        
    completed on 19 May 2005. As a result, the Offer has becoming             
    unconditional in all respects on 19 May 2005. The beneficial              
    shareholding interests in the Company of the Offeror and parties acting   
    in concert with it collectively has increased to approximately 60.68%,    
    and is therefore obliged under Rule 26 of the Takeovers Code to make an   
    unconditional mandatory cash offer to acquire all the issued Shares       
    other than those already owned by the Offeror or parties acting in        
    concert with it. It is expected that the composite offer document         
    containing, among other things, the terms of the Offer, the opinions of   
    the independent board committee of the Company and the advice from the    
    joint independent financial advisers in relation to the Offer will be     
    despatched to the Shareholders on or before 31 May 2005.                  
                                                                              
    The Board is also pleased to announce the appointment of Tai Fook         
    Capital Limited and BCOM Securities Company Limited as the joint          
    independent financial advisers to the independent board committee of the  
    Company and the Independent Shareholders in relation to the Offer.        
                                                                              
    Reference is made to the announcement dated 10 May 2005 (the              
    "Announcement") jointly issued by the Company and the Offeror regarding   
    the Offer. Defined terms and expressions used herein shall have the same  
    meanings as those in the Announcement unless otherwise stated.            
                                                                              
    COMPLETION OF THE SHARE TRANSFER AGREEMENT                                
                                                                              
    The Share Transfer Agreement was completed on 19 May 2005. As a result,   
    the Offer has becoming unconditional in all respects on 19 May 2005. The  
    beneficial shareholding interests in the Company of the Offeror and       
    parties acting in concert with it collectively has increased to           
    approximately 60.68%, and is therefore obliged under Rule 26 of the       
    Takeovers Code to make an unconditional mandatory cash offer to acquire   
    all the issued Shares other than those already owned by the Offeror or    
    parties acting in concert with it.                                        
                                                                              
    G.K. Goh Securities (H.K.) Limited will, on behalf of the Offeror, make   
    the Offer to acquire all the Offer Shares in issue not already owned by   
    the Offeror or parties acting in concert with it. Details of the terms    
    of the Offer will be set out in the composite offer document to be        
    issued by the Company and the Offeror and the accompanying form of        
    acceptance and transfer, which will be despatched to the Shareholders on  
    or before 31 May 2005. The composite offer document to be issued by the   
    Company and the Offeror will also contain, among other things, the        
    opinions of the independent board committee and the advice from Tai Fook  
    Capital Limited and BCOM Securities Company Limited, the joint            
    independent financial advisers in relation to the Offer.