For Immediate Release

November 18, 2002

HONG KONG, November 18, 2002 -- Sun Hung Kai Properties ("SHKP") (Ticker: 16.HK) today confirmed that the Company, through its wholly owned subsidiaries, has accepted the recent scrip dividend in lieu of the final cash dividend distributed by SmarTone (Ticker: 315.HK). Since the Company has increased its shareholding in SmarTone to over 30%, SHKP has launched a mandatory general offer for SmarTone at a price of HK$8.25 per share, as required under the Hong Kong Takeover Code. The launch of the mandatory general offer is solely due to the requirements of the Hong Kong Takeover Code and SHKP has no intention of taking SmarTone private or deliberately with a view to substantially increasing its stake in the wireless company.

SmarTone's final dividend scheme was approved by its shareholders on November 15, 2002. SHKP said that it elected to accept SmarTone's scrip dividend because the Company believes the allotment price for the dividend scrip is more attractive than the final cash dividend. Since some SmarTone shareholders elected the final cash dividend, SHKP's acceptance of the scrip dividend has increased its holding, together with holdings of other parties acting in concert with it, in SmarTone from 29.9% to 30.1%. Under the Hong Kong Takeover Code, SHKP has a legal obligation to make a general offer for the remaining outstanding shares of SmarTone.

Mr. Raymond Kwok Ping-Luen, Vice Chairman and Managing Director of SHKP, said: "This is a purely technical exercise. We are making a general offer for SmarTone because we are required to do so under the Hong Kong Takeover Code. Our positive view and confidence in SmarTone and its strategy is demonstrated in our acceptance of the scrip dividend, but it is not SHKP's intention to privatize or significantly increase our holding in SmarTone."

Since SHKP's intention is not to privatize or deliberately with a view to significantly increase its shareholding in SmarTone, the Company is pricing its general offer at HK$8.25 per share. This represents the highest price paid by SHKP or its concert parties for SmarTone shares in the last six months.

SHKP intends to distribute the offering circular to SmarTone shareholders within 21 days after the general offer announcement date. The acceptance period will be open for at least 21 days after the distribution of the offering circulars. The general offer is conditional upon shares being tendered such that SHKP passes the 50% ownership threshold; if the 50% ownership condition is not obtained, the offer will lapse.

Morgan Stanley is acting as financial advisor to SHKP in this transaction.

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