ANNOUNCEMENTS

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ANNOUNCEMENT

The boards of directors of Guoco Group Limited ("Guoco") and Dao Heng Bank Group Limited ("DHBG") announce that an agreement ("Sale & Purchase Agreement") was entered into on 13th June, 1996 between Dao Heng Bank Limited ("the Vendor"), a wholly owned subsidiary of DHBG, and New World Development Company Limited ("the Purchaser") or ("New World") in respect of the sale and purchase of the properties known as Nos. 7, 9, 11, 13, 15, 17 and 19 Bonham Strand more specifically described as all those pieces or parcels of land (being a vacant site) registered in the Land Registry respectively as (1) Subsection 1 of Section D of Marine Lot No. 1, (2) The Remaining Portion of Section D of Marine Lot No. 1, (3) The Remaining Portion of Section C of Marine Lot No. 1, (4) Subsection 2 of Section C of Marine Lot No. 1, (5) The Remaining Portion of Subsection 1 of Section C of Marine Lot No. 1, (6) Section A of Subsection 1 of Section C of Marine Lot No. 1, (7) The Remaining Portion of Subsection A of Section A of Marine Lot No. 1, (8) Section M of Marine Lot No. 1 and (9) The Remaining Portion of Section G of Marine Lot No. 1 (the "Bonham Site"). Completion of the Sale & Purchase Agreement is expected to take place on or before 12th September, 1996.

Pursuant to the Sale & Purchase Agreement, the Vendor will sell and the Purchaser will purchase the Bonham Site and the appurtenances thereto (if any) at a consideration of HK$460,000,000.00, which shall be paid by the Purchaser to the Vendor as follows: -

1. HK$46,000,000.00, being the deposit payable by the Purchaser to the Vendor on the signing of the Sale & Purchase Agreement; and

2. HK$414,000,000.00, being the balance of the consideration payable by the Purchaser on or before completion of the Sale & Purchase Agreement.

The sale proceeds will be used by the Vendor as working capital.

Moreover, an Agreement to Assign was also entered into between the Vendor and New World on 13th June, 1996 whereby in consideration of New World entering into the Sale & Purchase Agreement, the Vendor agrees to assign to New World all its estate right interest (if any) of Subsection 3 of Section D of Marine Lot No. 4 on 12th September, 1996.

Hong Kong, 18th June, 1996