09:19     <00017> & <00917> - Joint Announcement & <00917> Resume (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 any part of the contents of this               
    announcement.                                                             
                                                                              
    This announcement does not constitute an offer to buy, or the             
    solicitation of an offer to sell or subscribe for, any securities         
    or an invitation to enter into an agreement to do any such things,        
    nor is it calculated to invite any offer to buy, sell or subscribe        
    for any securities.                                                       
                                                                              
    New World Development Company Limited                                     
    (incorporated in Hong Kong with limited liability)                        
    (Stock Code: 0017)                                                        
                                                                              
    New World China Land Limited                                              
    (incorporated in the Cayman Islands with limited liability)               
    (Stock Code: 0917)                                                        
                                                                              
    PLACING OF EXISTING SHARES OF NEW WORLD CHINA LAND LIMITED WITH           
    PUT OPTIONS                                                               
    AND                                                                       
    RESTORATION OF PUBLIC FLOAT                                               
    OF NEW WORLD CHINA LAND LIMITED                                           
                                                                              
    Placing Agent                                                             
                                                                              
    TAI FOOK SECURITIES COMPANY LIMITED                                       
                                                                              
    Background                                                                
                                                                              
    As stated in the Rights Issue Result Announcement, following              
    completion of the Rights Issue, the number of Shares held in public       
    hands fell below 25% of the issued share capital of the Company.          
    As such, NWD and Easywin entered into the Placing Agreement with          
    the Placing Agent to place down Easywin's shareholdings in the            
    Company in order to comply with the minimum 25% public float              
    requirement under Rule 8.08 of the Listing Rules.                         
                                                                              
    Placing Agreement                                                         
                                                                              
    NWD and Easywin entered into the Placing Agreement with the Placing       
    Agent on 25 May 2005 for the placing of up to a maximum of 262            
    million existing Shares owned by Easywin at a price of HK$2.90 per        
    Placing Share on a best effort basis. The Placing Price represents        
    (i) a premium of approximately 6.42% over the closing price of            
    HK$2.725 per Share as quoted on the Stock Exchange on 23 May 2005,        
    being the last trading day of the Shares on the Stock Exchange prior      
    to the suspension of the trading in the Shares on the Stock Exchange;     
    (ii) a premium of approximately 2.47% over the average closing            
    price of HK$2.830 per Share for the last 10 consecutive trading           
    days up to and including 23 May 2005 as quoted on the Stock Exchange;     
    and (iii) a premium of approximately 3.42% over the average closing       
    price of approximately HK$2.804 per Share for the last 30                 
    consecutive trading days up to and including 23 May 2005 as quoted        
    on the Stock Exchange.  There is no lock-up period imposed on the         
    Placees in respect of the Placing Shares to be placed to them             
    pursuant to the Placing Agreement.                                        
                                                                              
    Completion of the Placing Agreement is expected to take place on          
    or before 3 June 2005. On the basis that all the 262 million Placing      
    Shares are successfully placed to Independent Third Parties under         
    the Placing Agreement, the minimum 25% public float of the Company        
    as required under Rule 8.08 of the Listing Rules will be restored.        
                                                                              
    Option Agreement                                                          
                                                                              
    Subject to completion of the Placing Agreement, NWD and Easywin           
    will enter into an Option Agreement with each Placee. Pursuant to         
    the Option Agreements, Easywin will grant the Put Options to the          
    Placees which are exercisable at an initial Exercise Price of             
    HK$2.90 per Share (subject to adjustments) by the Placees on the          
    Exercisable Date (subject to certain Accelerating Events).  Upon          
    exercise of the Put Option by a Placee, such Placee shall be              
    entitled to sell up to all of the Option Shares beneficially owned        
    by such Placee at the applicable Exercise Price and Easywin is            
    obliged to purchase the number of Option Shares in respect of which       
    the Put Option is exercised at such Exercise Price.