For Immediate Release

18 October 2005

HIGHLIGHTS OF 2004/2005 OPERATIONS

This is Guoco's fourth year of transformation into an investment organization - making sure and steadfast progress in strengthening its investment infrastructure and developing its synergistic investment processes.

• For the year, the Group achieved a profit attributable to shareholders of HK$3.2 billion - a record profit apart from the one-off exceptional gain on disposal of Dao Heng Bank Group achieved in year 2001.

• Treasury and investment management is the main contributor to the Group's profit, accounting for over 86% of the contribution from operations.

• Overall turnover increased by HK$2,828 million or 24% to HK$14,790 million. Treasury and investment management contributed HK$12,694 million (86%) whereas property development and investment accounted for HK$1,962 million (13%).

• The final dividend of HK$3.00 per share together with the interim dividend of HK$0.80 per share paid during the year, totalling HK$3.80 per share, represents an increase of 27% as compared with the previous year.

• The share price of Guoco has risen by over 20% in each of the last three years, advancing from HK$43.5 as at 30 June 2002 to HK$80.0 as at 30 June 2005, outperforming the Hang Seng Index by over 50% in the corresponding period.

Treasury and Investment

• The treasury and investment teams achieved another year of good performance.

• Our Group has been focusing on regional markets such as Australia, Hong Kong, China and Singapore, with increased exposures in the United Kingdom and the United States. Given the evidence of turnaround of its economy and corporate sectors, Japan will be a market with potential opportunities. We are also exploring direct investments in the PRC.

• We continue to recruit the right talents and strengthen our proprietary investment model to enhance our market coverage and research capabilities. We are also in the process of introducing a new portfolio management system. Upon full installation, this system will provide more sophisticated reporting and control functions to our treasury and investment activities.

Other Businesses

GuocoLand Limited ("GLL", a 62.4% owned subsidiary listed in Singapore)

• China is a property market with great potential. GLL recorded significant increase in contribution from China projects, mainly from the 262-Unit residential project of Central Park in Shanghai which achieved total sales of 99%.

• GLL continues to expand further in major cities near the thriving Yangtze River delta and prosperous Jiangsu province, where there is a fast-growing middle class and a strong demand for good quality housing. GLL is actively looking into acquiring more land bank in the PRC. For instance, GLL recently acquired a sizeable residential site of approximately 296,000 square metres in Nanjing City. This site can be developed into a resort style development with low to mid-rise apartments, retail outlets and recreational facilities.

• In addition, GLL continues its development in two other property markets of Singapore and Malaysia. GLL is working intensively to pursue sizeable development projects in Singapore. It had submitted a concept proposal to bid for the Integrated Resort at Marina Bayfront in Singapore and is short-listed to participate in the final tender.

• GLL has embedded experienced management team in Malaysia through its 44% interests in GuocoLand (Malaysia) Berhad ("GLM") which is listed in Malaysia. GLM recently announced that it will be setting up a REIT to be listed in Malaysia by injecting two commercial buildings, namely, HP Towers and Menara HLA of a total net lettable area of approximately 750,000 sq. feet to the REIT.

Hong Leong Bank Berhad ("HLBB", a company listed in Malaysia)

• The transformation of HLBB has yielded significant results. Personal financial services are now the predominated segment for the Bank.

• HLBB also reached another critical milestone in being granted an Islamic banking licence by Bank Negara of Malaysia. It is a universal licence under Malaysia's dual banking infrastructure, not only for Islamic financing business but it also allows HLBB to make inroad into the Islamic debt capital markets.

BIL International Limited ("BIL")

• Guoco Group made mandatory cash offer (the "Offer") for BIL in July 2005 and the offer price for each BIL share was revised to increase from S$1.20 to S$1.25 on 30 September 2005. The Offer is expected to go unconditional upon closing on 21 October 2005.

• Thistle Hotels is BIL's principal investment. Thistle owns, leases or manages 49 hotels (10,800 rooms) in the United Kingdom. With approximately 6,000 bedrooms and 228 meeting rooms in London, Thistle is the largest full service hotel operator in the capital. The company also owns or manages hotels in most cities in the United Kingdom.

• We will work with BIL's management and improve its operational performance and optimise the returns on BIL's asset base.

Remarks: If there is any discrepancy between Chinese and English versions of the above information, the English version shall prevail.

Guoco Group Limited is an investment holding company listed on the Hong Kong Stock Exchange (SEHK: 0053). The principal activities of its subsidiaries and associated companies include investment and treasury management, property development and investment, stock and commodity broking, investment advisory, banking and finance, insurance, fund management as well as hotel investment and management, operating principally in Hong Kong, Singapore, Malaysia, the PRC and the United Kingdom etc.

Contacts :

Ms. Stella Lo
Group Company Secretary
Tel: ( 852 ) 2283 8710
Fax: ( 852 ) 2285 3210
E-mail: stella.lo@guoco.com

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