DIT Group Limited — Capital/Financing Update 2004

Sep 8, 2004

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.

SOUTH EAST GROUP LIMITED 東南國際集團有限公司[*]

(Incorporated in Bermuda with limited liability) (Stock Code: 726)

ADJUSTMENT TO THE CONSIDERATION FOR ACQUIRING LAND IN THE PRC AND DEFERRAL OF PROPERTY DEVELOPMENT

Reference is made to the Company’s announcement dated 29 October 2003 and circular dated 19 November 2003 in relation to the acquisition of interests in land for residential purpose.

The purpose of this announcement is to inform the Company’s shareholders that the total consideration for procuring the acquisition of the Property has been revised to approximately RMB41,200,000, of which approximately RMB33,000,000 comprises the cost of the land with an area of approximately 34,947 square meters as successfully accepted in the tender. Because of the delay in signing agreements with the relevant government authorities following the acceptance of tender, it is expected that completion of development of the Property and selling of residential units provided thereon will be postponed to the third quarter and the fourth quarter of 2005 respectively.

Reference is made to the announcement made by the Company dated 29 October 2003 (the “Announcement”) and the circular of the Company dated 19 November 2003 (the “Circular”) in relation to the acquisition of interests in land for residential purpose. Terms used herein shall have the same meanings as those defined in the Circular unless defined otherwise.

As stated in the Announcement and the Circular, the Consideration for procuring the acquisition of the Property with an area of approximately 33,333 square meters was RMB28,700,000, subject to adjustments. Although there is no variation of terms of both the Transfer of Equity Interests Agreement and the Supplemental Agreement, the total consideration has been revised to approximately RMB41,200,000, of which approximately RMB33,000,000 comprises of the cost of land with an area of approximately 34,947 square meters as successfully accepted in the tender submitted to the Authorized Developer. The adjusted consideration, which is funded by internal resources, represents an increase of approximately RMB12,500,000 when compared to the original Consideration as stated in the Announcement and Circular. The additional RMB12,500,000 is mainly due to the higher price used when submitting the tender, taking into consideration of the prevailing property market condition. The price bid for the Property is approximately 14.98% higher than originally contemplated when the Agreements were entered on 23 October 2003. The tender submitted was accepted by the Songjiang House and Land Administration Bureau (上海市松江區房屋土地管理局 ) (the “Bureau”) in 27 February 2004 and the land transaction contemplated thereunder was confirmed upon the signing of the contract for sale of land use right of stated owned land (上海市國有土地使 用權出讓合同 ) with the Bureau and of the contract of complement (配套合同 ) with Songjiang Land Development Centre (上海市松江區土地整理發展中心 ) in 16 August 2004. The time lag between the Bureau’s acceptance of tender and the signing of the above agreements is due to negotiations of terms, such as plot ratio, which took place between the parties to the agreements.

Because of the delay in signing the agreements with the relevant authorities, it is expected that completion of the development of the Property and selling of residential units provided thereon will be postponed to the third quarter and the fourth quarter of 2005 respectively.

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The directors of the Company believe that the increase in the consideration for acquiring the Property would not have changed the classification of the transaction if it had been revised at the time when it was previously announced by means of the Announcement and Circular.

The directors of the Company as at the date of this announcement are Mr. Budiman Rahardja and Mr. Kwan Kei Chor, Samuel as executive directors, Mr. Chen Zhi Yung as non-executive director and Mr. Lo Yuk Lam and Mr. Wong Kam Wah as independent non-executive directors.

By order of the Board South East Group Limited Kwan Kei Chor, Samuel Director

Hong Kong, 8 September 2004

* For identification purpose only

Please also refer to the published version of this announcement in China Daily.

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