09:57     JUNEFIELD GROUP<00758>-Announcement&Resumption of Trading(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 disclaims any liability                        
    whatsoever for any loss howsoever arising from or in                      
    reliance upon the whole or part of the contents of this                   
    announcement.                                                             
                                                                              
    JUNEFIELD DEPARTMENT STORE GROUP LIMITED                                  
    (Incorporated in Bermuda with limited liability)                          
    (Stock Code: 758)                                                         
                                                                              
    MAJOR AND CONNECTED TRANSACTIONS INVOLVING                                
    ACQUISITION OF PROPERTY                                                   
    AND                                                                       
    DISPOSAL OF PROPERTY,                                                     
    AND                                                                       
    RESUMPTION OF TRADING                                                     
                                                                              
    On 26 April 2005, Junefield China, an indirect                            
    wholly-owned subsidiary of the Company, entered into                      
    the Acquisition Agreement with Wuhan Sogo, a connected                    
    person (as defined in the Listing Rules) of the Company,                  
    for the acquisition of the Wuhan Property.                                
                                                                              
    On 26 April 2005, Ever Park, an indirect wholly-owned                     
    subsidiary of the Company, entered into the Disposal                      
    Agreement with Beijing Junefield, a connected person                      
    (as defined in the Listing Rules) of the Company, for                     
    the disposal of the Beijing Property on a fully                           
    underwritten basis. If any of the 15 office units of                      
    the Beijing Property remains unsold upon the expiry                       
    of the Disposal Agreement, Beijing Junefield as an                        
    underwriter shall purchase from Ever Park such unsold                     
    units and pay a sum equivalent to the minimum selling                     
    prices of those units stipulated in the Disposal                          
    Agreement to Ever Park on or before 30 December 2005,                     
    being 30 days from the expiry of the Disposal Agreement.                  
                                                                              
    Each of the Acquisition Agreement and the Disposal                        
    Agreement constitutes a major and connected                               
    transaction of the Company under Chapters 14 and 14A                      
    of the Listing Rules, respectively, and is therefore                      
    subject to the approval of the independent                                
    shareholders of the Company at a general meeting.                         
                                                                              
    An independent board committee comprising all the                         
    independent non-executive Directors will be formed to                     
    advise independent shareholders of the Company as to                      
    (i) whether the terms of the Acquisition and the                          
    Disposal are fair and reasonable; (ii) whether each                       
    of the Acquisition and the Disposal is in the interests                   
    of the Company and its shareholders as a whole; and                       
    (iii) how the independent shareholders of the Company                     
    should vote in respect of the resolutions to approve                      
    the Acquisition and the Disposal. In addition, an                         
    independent financial adviser will be appointed to                        
    advise the independent board committee of the Company                     
    and the independent shareholders of the Company as to                     
    (i) whether the terms of the Acquisition and the                          
    Disposal are fair and reasonable; (ii) whether each                       
    of the Acquisition and the Disposal is in the interests                   
    of the Company and its shareholders as a whole; and                       
    (iii) how the independent shareholders of the Company                     
    should vote in respect of the resolutions to approve                      
    the Acquisition and the Disposal.                                         
                                                                              
    A circular containing, among other things, further                        
    details of the Acquisition, the Disposal, the Property                    
    Valuation, the letter of advice from the independent                      
    financial adviser and a notice of the SGM, will be                        
    dispatched to the Shareholders as soon as practicable                     
    in accordance with the requirements of the Listing                        
    Rules.                                                                    
                                                                              
    At the request of the Company, dealings in the Shares                     
    on the Stock Exchange was suspended with effect from                      
    9:30 a.m. on 26 April 2005 pending the release of this                    
    announcement. Application has been made for the                           
    resumption of trading in the Shares on the Stock                          
    Exchange with effect from 9:30 a.m. on 24 May 2005.                       
                                                                              
    BACKGROUND INFORMATION                                                    
    On 26 April 2005, Junefield China, an indirect                            
    wholly-owned subsidiary of the Company, entered into                      
    the Acquisition Agreement with Wuhan Sogo, a connected                    
    person (as defined in the Listing Rules) of the Company,                  
    for the acquisition of the Wuhan Property.