09:40     CHEUNG KONG<00001> & HUTCHISON<00013>-Joint Announcement (2)        

    On 23 May, 2005, BDL, an entity jointly controlled indirectly             
    by CKH and HWL, entered into the Joint Venture Agreement for              
    the establishment of JVCo with the PRC Partner.                           
                                                                              
    JVCo is a sino-foreign co-operative joint venture to be                   
    established for the development of the Tianjin Property into              
    a commercial development (in phase one) and residential                   
    development (in phase two).                                               
                                                                              
    The proposed registered capital of JVCo is US$47.5 million                
    (approximately HK$371 million). The initial total investment              
    of JVCo is US$72.83 million (approximately HK$568 million) to             
    be increased to US$123.5 million (approximately HK$963 million)           
    upon embarking on phase two of the Development. The registered            
    capital will be contributed on an 80:20 basis by BDL and the              
    PRC Partner respectively. BDL's contribution will be in the form          
    of cash. The PRC Partner will inject into JVCo the Tianjin                
    Property, which will be recognised as the PRC Partner's                   
    contribution to the JVCo's registered capital and surplus. The            
    PRC Partner will have no obligation to contribute any part of             
    the total investment in excess of the registered capital of JVCo.         
                                                                              
    Any contribution to the registered capital of, and any                    
    shareholders' loans to, JVCo through BDL is expected to be made           
    equally by indirect subsidiaries of CKH and HWL in proportion             
    to their respective equity interests in these companies using             
    their respective internal resources. The Joint Venture Agreement          
    provides for the PRC Partner's entitlement to approximately               
    twenty five per cent. of the floor area of the completed buildings        
    in the Development as its return of investment in JVCo and the            
    PRC Partner is not otherwise entitled to any profit share of              
    JVCo. It is expected that any profit of BDL is to be ultimately           
    shared equally by indirect subsidiaries of CKH and HWL in                 
    proportion to their respective indirect equity interests in BDL.          
                                                                              
    REASONS FOR THE TRANSACTION                                               
                                                                              
    The principal activities of the CKH Group are investment holding,         
    property development and investment, hotel and serviced suite             
    operation, property and project management and investments in             
    securities.                                                               
                                                                              
    The HWL Group operates and invests in five core businesses: ports         
    and related services; property and hotels; retail and                     
    manufacturing; energy, infrastructure, finance and investments;           
    and telecommunications.                                                   
                                                                              
    The addition of the Tianjin Property to the landbank for                  
    development into residential and commercial properties is                 
    consistent with one of the core business strategies for both              
    CKH and HWL.                                                              
                                                                              
    CONNECTED TRANSACTION                                                     
                                                                              
    HWL is a substantial shareholder of certain subsidiaries of CKH           
    and hence is a connected person of CKH within the meaning of              
    the Listing Rules. CKH is a substantial shareholder of HWL and            
    hence is a connected person of HWL within the meaning of the              
    Listing Rules. BDL is an associate of each of CKH and HWL and             
    thus a connected person of CKH and HWL within the meaning of              
    the Listing Rules.                                                        
                                                                              
    The financial assistance provided or to be provided by each of            
    CKH and HWL to BDL by way of the contribution to the registered           
    capital of, and any shareholders' loans to, JVCo through BDL              
    on an unsecured basis and on normal commercial terms in                   
    proportion to their 50/50 interest in BDL constitutes or will             
    constitute a connected transaction for each of CKH and HWL under          
    Listing Rule