09:49 MACAU SUCCESS<00487>-Announcement & Resumption of Trading(5) INFORMATION ON PONTE 16 Ponte 16 is a proposed theme park construction project being developed by Pier 16 - Property Development on the Land Parcel. According to the revised development plan by The Jerde Partnership, Inc., the design architects of Ponte 16 and an Independent Third Party, the buildings at Ponte 16 will resemble the design and construction style of architecture in Macau during the early-to-middle 20th century to enhance visitors' understanding of the history and culture of Macau. In this regard, Ponte 16 has retained Macau Millennium College (being an Independent Third Party) as the historical reference adviser. Ponte 16 will include a luxury hotel with 200 exquisitely equipped luxury guestrooms and 20 VIP mansions, a casino with not less than 150 gaming tables, shopping arcades, a cultural space and car parks, with an aggregate gross floor area amounts to approximately 63,584 square metres. Subject to the approval of the Government of Macau, the casino shall be operated and managed by SJM. The first phase of Ponte 16, which will include the casino, is expected to be completed by the end of 2006 and the whole of Ponte 16 is expected to be completed by the end of 2007 with expected total investment amounting to approximately HK$1,000 million. It has been agreed between the shareholders of Pier 16 - Property Development that all investment amounts for the development of Ponte 16 will be firstly financed by external loans. If the external loans are insufficient to meet the funding requirement, the shareholders of Pier 16 - Property Development will provide shareholders' loans in proportion to their respective equity interests therein. Assuming no external loans can be borrowed by Pier 16 - Property Development, the maximum total amounts of shareholders' loans to be advanced by SJM-Investimentos, World Fortune and Joy Idea to Pier 16 - Property Development will be approximately HK$1,000 million. On this basis and given that (i) World Fortune has already provided shareholder's loan in an amount of HK$2,500,000; and (ii) World Fortune has agreed to purchase the Sale Loan of HK$1,250,000 under the Agreement, World Fortune may have to further provide, by way of shareholder's loans, a maximum of approximately HK$364 million as its pro rata sharing of 36.75% after Completion to Pier 16 - Property Development. REASONS FOR AND BENEFITS OF ENTERING INTO THE AGREEMENT The Company is an investment holding company. The Group is principally engaged in the leasing and management of the 55% owned cruise ship and other tourists-related businesses. As stated in the annual report of the Company for the financial year ended 30 September 2004, the established strategies of the Group are to develop and strengthen tourists-related business including the further development of hotel and gaming businesses in Macau. The Group foresees a very positive market in Macau and is keen to identify suitable investment opportunities for further development in Macau, in particular, the hotel and gaming businesses, for the following major reasons: (i) it is expected by the Directors that, given clear strategies established by the Government of Macau to continuously develop Macau as a tourism and gaming, as well as an international MICE (Meetings, Incentives, Conferences, Exhibitions) and leisure destination, the prospects of the gaming industry, local tourism, hotel services and other related industries in Macau will be promising in the future; (ii) according to the statistics provided by the Government of Macau, (a) the Gross Domestic Product ("GDP") of Macau in 2004 was approximately MOP82.685 billion (equivalent to approximately HK$80.277 billion), representing a growth rate of approximately 30.1% as compared with that in 2003; and (b) GDP per capita of Macau in 2004 was approximately MOP181,000 (equivalent to approximately HK$176,000), representing an increase of approximately 26.8% as compared with that in 2003; (iii) following the execution of the Individual Visit Scheme that residents in certain selected cities of the PRC may apply to visit Macau and Hong Kong in their individual capacities without joining group tours as well as the liberalisation of Macau's gaming industry by the Government of Macau in 2002, Macau is poised to become the gaming, culture and leisure destination of choice for a significant part of the PRC and Southeast Asia's population. According to the Tourist Office of the Government of Macau, the total number of visitors arrived in Macau in 2004 amounted to approximately 16.67 million, representing an increase of approximately 40.3% as compared with that in 2003. Among the aforementioned 16.67 million visitors, over 87% of them came from the PRC and Hong Kong; and (iv) as a result of the proximity of Macau to Hong Kong, the hotel and gaming businesses in Macau are likely to benefit from the Disneyland to