Harbour Centre Development Limited — M&A Activity 1999

Jun 21, 1999

Listed Company Information

FE CONSORT INTL<0035> - Announcement 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. FAR EAST CONSORTIUM INTERNATIONAL LIMITED (Incorporated in the Cayman Islands with limited liability) Possible spin-off a subsidiary and listing on the NASDAQ Stock Market China Homes, Limited ("China Homes"), a wholly-owned subsidiary of Far East Consortium International Limited (the "Company"), intends to seek admission for its securities to be traded on the NASDAQ Stock Market later this year (the "Proposal"). The Proposal may or may not proceed. The Directors of the Company announce that China Homes, a wholly-owned subsidiary of the Company, intends to seek admission for its securities to the NASDAQ Stock Market later this year. China Homes and its subsidiaries are engaged principally in the development and investment in property and related projects in the People's Republic of China (excluding Hong Kong). The Proposal, if implemented successfully, will enable China Homes to have separate fund raising abilities to finance its future expansion, while at the same time,allowing the Company to continue to retain control over it. The Directors also expect that the proposed admission of China Homes to NASDAQ Stock Market, if successful, will help increase China Homes* profile and enable investors to appraise the potential of the Company and China Homes separately. The Proposal currently envisages that a formal application for admission to the NASDAQ Stock Market will be made during the third quarter of 1999. The structure of the offer is to be finalised and no decision has yet been made in this regard. Application will also be made to The Stock Exchange of Hong Kong Limited (the "Stock Exchange") for the approval of the spin-off of China Homes. The Proposal is subject to the fulfillment of the requirements of practice note 15 to the Rules Governing the Listing of Securities on the Stock Exchange and approval by the Stock Exchange. The Proposal may also be subject to approval by independent shareholders of the Company. Investors should note that the Proposal may or may not proceed. A further announcement will be made by the Company in connection with the Proposal as and when appropriate. Investors should exercise caution when dealing in the Company's securities. By Order of the Board FAR EAST CONSORTIUM INTERNATIONAL LIMITED Michael Chi Ning O'Young Managing Director Hong Kong, 19th June, 1999