09:58     JUNEFIELD GROUP<00758>-Announcement&Resumption of Trading(3)        

    Completion                                                                
    Completion of the Acquisition is conditional upon:                        
                                                                              
    (i)   the completion of the First Transfer Agreement                      
    and Wuhan Sogo will have no obstacle in obtaining the                     
    property certificate and the land use right                               
    certificate in relation to the Wuhan Property;                            
                                                                              
    (ii)   the approval by the independent shareholders                       
    of the Company of the Acquisition and the transactions                    
    contemplated under the Acquisition Agreement at a                         
    general meeting of the Company;                                           
                                                                              
    (iii)   the full compliance of any relevant and                           
    applicable requirements under the Listing Rules in                        
    relation to the Acquisition Agreement; and                                
                                                                              
    (iv)   Junefield China being fully satisfied with the                     
    due diligence report on the legality and the validity                     
    of the title of the Wuhan Property.                                       
                                                                              
    The land use right certificate will be issued by the                      
    Ministry of Land and Resources PRC (*)                                    
    while the property certificate will be issued                             
    by the Property Management Division of Wuhan (*).                         
                                                                              
    If any of the above conditions is not fulfilled on or                     
    before 31 December 2005 or any later date to be mutually                  
    agreed between the parties, the Acquisition will not                      
    proceed.                                                                  
                                                                              
    For the avoidance of doubt, completion of the                             
    Acquisition Agreement is not conditional to the                           
    completion of the Disposal Agreement.                                     
                                                                              
    As advised by the PRC legal advisers, Wuhan Sogo, as                      
    a collective enterprise in the PRC, has the legal                         
    capacity to enter into the Acquisition Agreement and                      
    completion of the Acquisition Agreement is not subject                    
    to approval from PRC government authorities.                              
                                                                              
    Information on the Wuhan Property                                         
    The Wuhan Property comprises two floors of a shopping                     
    arcade situated at Block A, You Zi Xiang Mansion, No.                     
    374 Jiefang Da Road, Wuhan City, Hubei Province, the                      
    PRC with an aggregate gross floor area of 3,691.50                        
    square meters. You Zi Xiang Mansion is a                                  
    multi-functional complex consisting of two 26-storey                      
    commercial / office towers both erected on a 7-level                      
    commercial podium situated in the central business                        
    district of Wuhan City. The development was completed                     
    in about 1999. Wuhan Sogo is a company principally                        
    engaged in the operation and management of department                     
    stores in Wuhan. Wuhan Sogo agreed to acquire, among                      
    others, the interests in the Wuhan Property pursuant                      
    to the First Transfer Agreement, which is expected to                     
    be completed on or before 29 November 2005.                               
                                                                              
    At the time when Wuhan Sogo entered into the First                        
    Transfer Agreement with the Independent Third Party                       
    to purchase the Wuhan Property, the Company had no                        
    intention to purchase the Wuhan Property. The original                    
    acquisition cost to Wuhan Sogo attributable to the                        
    Wuhan Property under the First Transfer Agreement is                      
    estimated to be approximately RMB27.3 million                             
    (approximately HK$25.76 million). The completion of                       
    the Acquisition is thus subject to, among others, the                     
    completion of the First Transfer Agreement.                               
                                                                              
    Reasons for the Acquisition                                               
    The Group is principally engaged in the business of                       
    general construction, property investment and                             
    management in the PRC while Junefield China is                            
    principally engaged in property investment and                            
    management in the PRC. The Acquisition is conducted                       
    in the ordinary and usual course of business of the                       
    Group.