09:59     JUNEFIELD GROUP<00758>-Announcement&Resumption of Trading(7)        

    GENERAL                                                                   
    An independent board committee comprising all the                         
    independent non-executive Directors will be formed to                     
    advise 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 of the Company 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.                                                                    
                                                                              
    RESUMPTION OF TRADING                                                     
    At the request of the Company, dealings in the Shares                     
    on the Stock Exchange were 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.                       
                                                                              
    DEFINITIONS                                                               
    "Acquisition"   the acquisition of the Wuhan Property                     
    pursuant to the Acquisition Agreement                                     
                                                                              
    "Acquisition Agreement"   the agreement entered into                      
    on 26 April 2005 between Junefield China as the                           
    purchaser and Wuhan Sogo as the vendor in relation to                     
    the Acquisition and as amended by a supplemental                          
    agreement dated 23 May 2005                                               
                                                                              
    "Beijing Junefield"   Beijing Junefield Real Estate                       
    Development Co., Ltd.(*), a                                               
    limited company established under the laws of the PRC                     
    and Mr. Zhou is entitled to exercise more than 30% of                     
    the voting power at its general meetings                                  
                                                                              
    "Beijing Property"   the property comprising 15                           
    office units situated at Junefield Plaza, Tower 1, No.                    
    6 Xuan Wu Men Wai Da Jie, Beijing City, the PRC                           
                                                                              
    "Board"   the board of Directors                                          
                                                                              
    "Company"   Junefield Department Store Group Limited,                     
    a company incorporated in Bermuda with limited                            
    liability, the shares of which are listed on the Stock                    
    Exchange (stock code: 758)                                                
                                                                              
    "Director(s)"   the director(s) of the Company                            
                                                                              
    "Disposal"   the disposal of the Beijing Property on                      
    a fully underwritten basis pursuant to the Disposal                       
    Agreement                                                                 
                                                                              
    "Disposal Agreement"   the disposal and underwriting                      
    agreement entered into on 26 April 2005 between Ever                      
    Park and Beijing Junefield as underwriter in relation                     
    to the Disposal                                                           
                                                                              
    "Ever Park"   Ever Park Development Limited, an                           
    indirect wholly-owned subsidiary of the Company                           
                                                                              
    "First Transfer Agreement"   the agreement dated 30                       
    November 2004 entered into between Wuhan Sogo and an                      
    Independent Third Party in relation to sale and                           
    purchase of, among others, the Wuhan Property                             
                                                                              
    "Group"   the Company and its subsidiaries                                
                                                                              
    "Hong Kong"   Hong Kong Special Administrative Region                     
    of the People's Republic of China