For Immediate Release

Guoco Group Limited ("Guoco") and Friends Ivory & Sime plc ("FIS") today announce that they have entered into a joint venture which will focus on developing asset management business in the Asian region.

At completion, which is conditional on regulatory approval, a Guoco subsidiary will acquire a 50% shareholding in FIS's existing Hong Kong asset management subsidiary, Friends Ivory & Sime Asia Limited. The joint venture company will have funds of approximately US$1.8 billion under management at formation.

The joint venture company will locate its Asian headquarters in Guoco's Group headquarters at The Center, 99 Queen's Road Central, Hong Kong.

The longer term strategy of the joint venture is to develop both institutional and retail asset management business in the region. The geographic scope will include most of the Asia region including Australia but will exclude Japan, where FIS already has a strategic relationship with Sumitomo Life.

Dao Heng Fund Management Limited, a Guoco Group subsidiary, intends to enter into asset management arrangements with the joint venture company on completion and thereby materially enhance the Group's asset management capabilities. Dao Heng Fund Management has applied to the Hong Kong Mandatory Provident Fund Schemes Authority for authorisation as a MPF provider.

Mr. Kwek Leng Hai, President & Chief Executive Officer of Guoco Group said, "We are very pleased to be entering into a joint venture with Friends Ivory & Sime. Bringing together FIS's established investment approach and strong organisational and support systems with our regional experience, distribution networks and local market expertise, should generate an opportunity to enhance the asset management businesses of both groups".

Commenting on the joint venture, Mr. Peter Jones, Chief Executive of FIS, said, "We see the joint venture as another exciting development for Friends Ivory & Sime and it will allow us to develop profitable retail and institutional business in an important and fast growing region".

Corporate Information

Guoco Group Limited is a Hong Kong listed company, whose core businesses are in banking and financial services. Guoco is majority shareholder in Dao Heng Bank Group, which is shortly to become one of the 33 Hang Seng Index constituent stocks.

Friends Ivory & Sime is the listed asset management arm of Friends Provident, a major UK insurance and investment company. Friends Provident owns 63% of FIS.

FIS has 33 billion of assets under management and offices in UK, New York, Hong Kong and Tokyo, including the top-performing Asian investment trust, Pacific Assets. FIS has recently announced a joint venture arrangement with Sumitomo Life of Japan.

This joint venture builds upon an existing long-standing relationship between Guoco and Friends Provident, who each, through subsidiaries/associates, are 35% shareholders in Benchmark Group plc, a listed UK property company, which specializes in the central London property market.

For further information, please contact:
Ms. Helen Kwan
Corporate Communications Manager
Guoco Group Limited
Tel: 2218 8492

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