09:14     COSCO INTL HOLD<00517> - Announcement (5)                           

    Option to renew    :    An option exercisable by the tenant by            
    giving to the landlord a written notice not less than six months          
    before the expiry of the initial term of 3 years to renew the lease       
    for a further term of 3 years upon the same terms as are contained        
    in the 1st Tenancy Agreement, save and except (1) this clause for         
    renewal and the right to any decoration or rent-free period and           
    (2) at the prevailing open market rent to be agreed between the           
    parties or as determined by a chartered surveyor to be appointed          
    by agreement between the parties.     The Company will comply with        
    the relevant provisions under the Listing Rules in relation to            
    continuing connected transactions when the tenancy is renewed as          
    mentioned above.                                                          
                                                                              
    Right to sub-let    :    The tenant shall be entitled to sublet,          
    grant licence, part with possession of or share the premises or           
    any part thereof with any third party irrespective of whether any         
    rent or consideration is given therefor and on such terms and             
    conditions as the tenant may in its absolute discretion deem fit          
    without having to obtain any approval or consent from the landlord.       
                                                                              
    DETAILS OF THE 2nd TENANCY AGREEMENT                                      
                                                                              
    Date     :    Completion Date                                             
                                                                              
    Parties    :    COSCO Ship Trading, a non wholly-owned subsidiary         
    of the Company (as tenant).      Velu Exports, which will become          
    an indirect wholly-owned subsidiary of COSCO Hong Kong upon               
    Completion and a connected person of the Company (as landlord)            
                                                                              
    Premises    :    Unit 4802, 48th Floor, COSCO Tower, 183 Queen's          
    Road Central, Hong Kong                                                   
                                                                              
    Term    :    Initial term of 3 years commencing on the Completion         
    Date and expiring on the third anniversary date after the                 
    Completion Date (both days inclusive)                                     
                                                                              
    Rent    :    HK$165,825 per month (exclusive of Government rates,         
    air-conditioning and management charges and all other outgoings           
    of a non-capital and recurring nature but inclusive of Government         
    rent) during the initial term of 3 years                                  
                                                                              
    Management fee (including air conditioning charges)    :                  
    HK$22,671.50 per month (subject to review in accordance with the          
    provisions of the 2nd Tenancy Agreement)     The rent and other           
    charges will be financed by internal resources of the tenant. The         
    aggregate annual rental and other charges payable by the tenant           
    to the landlord for each of the financial years ending 31st               
    December 2005, 2006 and 2007 will be subject to the cap amounts           
    of HK$1,200,000, HK$2,300,000 and HK$2,300,000 respectively. The          
    cap amounts are determined with reference to the annual basic rent        
    and other charges including air-conditioning and management               
    charges payable to the landlord.                                          
                                                                              
    Rent-free period    :    No rent-free period since COSCO Ship             
    Trading is already using this premises. (Please refer to the              
    paragraph ``Reasons for and Benefits of the Continuing Connected          
    Transactions'' below.)                                                    
                                                                              
    Option to renew    :    An option exercisable by COSCO Ship               
    Trading by giving to the landlord a written notice not less than          
    six months before the expiry of the initial term of 3 years to renew      
    the lease for a further term of 3 years upon the same terms as are        
    contained in the 2nd Tenancy Agreement, save and except (1) this          
    clause for renewal and the right to any decoration or rent-free           
    period and (2) at the prevailing open market rent to be agreed            
    between the parties or as determined by a chartered surveyor to           
    be appointed by agreement between the parties.     The Company            
    will comply with the relevant provisions under the Listing Rules          
    in relation to continuing connected transactions when the tenancy         
    is renewed as mentioned above.                                            
                                                                              
    Right to sub-let    :    The tenant shall be entitled to sublet,          
    grant licence, part with possession of or share the premises or           
    any part thereof with any third party irrespective of whether any         
    rent or consideration is given therefor and on such terms and             
    conditions as the tenant may in its absolute discretion deem fit          
    without having to obtain any approval or consent from the landlord.       
                                                                              
    The total monthly rent of HK$697,825 (exclusive of Government             
    rates, air-conditioning and management charges and all other              
    outgoings of a non-capital and recurring nature but inclusive of          
    Government rent) for the premises under the 1st Tenancy Agreement         
    and the 2nd Tenancy Agreement was determined with reference to the        
    DTZ Valuation Report as at 30 April 2005 which reveals market rent        
    for those premises of an aggregate of HK$700,000.