CR Construction Group Holdings Limited — M&A Activity 2000

May 26, 2000

The Stock Exchange of Hong Kong Limited takes no responsibility for the contents of this announcement, makes no representation as to its accuracy or completeness and expressly disclaims any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

ANNOUNCEMENT

The Board of Directors announce the status of today's court hearing

Further to the announcement dated 19 May 2000, the board of directors of KEL Holdings Limited ("KEL") are pleased to update the shareholders' on the status of today's court hearing that:-

Court orders have been given for KEL and UDL Kenworth Group Limited and UDL Kenworth Engineering Limited (the "Relevant Companies") to convene court meetings of their respective creditors ( the "Court Meetings") to consider the Scheme of Arrangement. The Court Meetings are now scheduled on 29 June 2000.

Referring to the joint announcement between KEL & Deson Development International Holdings Limited dated 25 May 2000, a circular detailing terms of the Scheme of Arrangement, the Restructuring Proposal and the application for the granting of the whitewash wavier will be despatched no later than 26 June 2000.

Notices convening the Court Meetings of the Relevant Companies will be despatched, for Creditors whose postal address are in Hong Kong, 21 days prior to the Court Meetings and for Creditors postal address outside Hong Kong, 23 days prior to the Court Meetings.

Further announcement will be made when there is any material development of the matter.

By Order of the Board

KEL Holdings Limited

Leung Yat Tung

Chairman

Hong Kong, 25 May 2000

The directors of the Company jointly and severally accept full responsibility for the accuracy of information contained in this announcement and confirm, having made all reasonable inquiries, that to the best of their knowledge, opinions expressed in this announcement have been arrived at after due and careful consideration and there are no other facts not contained in this announcement, the omission of which would make any statement in this announcement misleading.

"Please also refer to the published version of this announcement in the Hong Kong Standard"