09:53     INNOVO<00703> - Announcement (2)                                    

    Trading in the Shares on the Stock Exchange has been                      
    suspended since 15 December 2003 at the request of                        
    the Company and remains suspended until further                           
    notice.                                                                   
                                                                              
    1.      INTRODUCTION                                                      
    On 17 May 2005, Infotower, an indirect wholly-owned                       
    subsidiary of the Company, has entered into the                           
    Agreement with the CJV Partner, an independent third                      
    party, to establish a contractual joint venture for                       
    the purpose of establishing and operating an                              
    amusement park erected on the Land.                                       
                                                                              
    Details of the Agreement are set out below.                               
                                                                              
    2.      THE AGREEMENT                                                     
    Date:   17 May 2005                                                       
                                                                              
    Parties:        (i)     Infotower, an indirect wholly-owned               
    subsidiary of the Company which is an investment                          
    holding company established for the formation of the                      
    CJV, a party to the CJV; and                                              
                                                                              
    (ii)    the CJV Partner, a collectively-owned                             
    enterprise established in the PRC and engaged in                          
    property construction in the PRC, a party to the CJV.                     
                                                                              
    To the best of the knowledge, information and belief                      
    of the Directors and having made all reasonable                           
    enquiries, the CJV Partner and its ultimate                               
    beneficial owners and associates are third parties                        
    independent of the Group and connected persons of the                     
    Group.                                                                    
                                                                              
    Contribution to Under the Agreement, parties to the                       
    CJV shall respectively make contribution to the CJV                       
    in the                                                                    
      the CJV by    following manners:                                        
      each parties                                                            
      to the CJV:   (i)     Infotower: to build and operate                   
    the amusement park on the Land during the Term and                        
    to provide the necessary rides and equipment                              
    according to the Budget; and                                              
                                                                              
    (ii)    the CJV Partner: to provide the CJV a right to                    
    use the Land at rent free during the Term.                                
                                                                              
    The percentage share of the parties to the CJV for                        
    the net profit after tax of the CJV shall accordingly                     
    be 60% for Infotower and 40% for the CJV Partner (or                      
    such other percentages as may from time to time be                        
    a consequence of any sale, assignment, transfer or                        
    disposal of the whole or part of the interest of a                        
    party to the CJV pursuant to or as permitted by the                       
    Agreement) provided the CJV Partner shall have no                         
    obligation to provide any additional funding towards                      
    the operation of the amusement park on the Land.                          
                                                                              
    Amount of       According to the Budget (which is prepared                
    by Infotower), the initial cash outlay for                                
    constructing                                                              
      contribution          and establishing the amusement park               
    on the Land (within a period of around six months from                    
    the                                                                       
      by the parties        Effective Date) will be                           
    approximately RMB13.8 million (approximately HK$12.9                      
    million), such                                                            
      to the CJV:   amount will be responsible by                             
    Infotower and is estimated based on the various costs                     
    for erecting the amusement park on the Land, including                    
    the construction cost and the cost for leasing machine                    
    rides.