IRC Limited — Capital/Financing Update 2003

Apr 28, 2003

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.

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ANNOUNCEMENT

Repurchase of US$9.9 million in principal amount of US$115 million five per cent. Exchangeable Guaranteed Bonds due 2004 issued by Lai Sun International Finance (Cayman Islands) Limited and guaranteed by Lai Sun Development Company Limited and

Share Price Movement

The Company has repurchased Exchangeable Bonds in the principal amount of US$9.90 million from HSBC.

At the request of The Stock Exchange of Hong Kong Limited, the directors of Lai Sun Development Company Limited confirm that they are not aware of any reasons for the decrease in the price of its shares on 25th April, 2003.

Lai Sun Development Company Limited (‘‘LSD’’ or the ‘‘Company’’) has, through a wholly-owned subsidiary, repurchased US$9.90 million in principal amount (plus premium and interest, which in aggregate with the principal totalled approximately US$13.91 million as at 31st March, 2003) of the US$115,000,000 five per cent. Exchangeable Guaranteed Bonds due 2004 issued by Lai Sun International Finance (Cayman Islands) Limited and guaranteed by LSD (‘‘Exchangeable Bonds’’) from The Hongkong and Shanghai Banking Corporation Limited (‘‘HSBC’’) on 24th April, 2003. Confirmation of completion of this transaction, which was effected through the relevant clearing systems in Europe, was received by the Company on 25th April, 2003. The repurchase was made at a discount to the outstanding principal (plus premium and interest) and was financed by a new term loan facility, guaranteed by LSD, in the amount of approximately US$12.77 million provided by HSBC for this purpose. Such term loan facility is on normal commercial terms, is repayable in one bullet repayment on 31st July, 2003 and will accrue interest at the rate of 1-3/4% over 1, 2 or 3 months SIBOR (Singapore Inter-bank Offered Rate).

LSD’s entire indebtedness to HSBC, including, since 1997, HSBC’s holding of the Exchangeable Bonds, is secured by, amongst other things, a mortgage over Causeway Bay Plaza 1. The repurchased bonds represent HSBC’s entire holding of the Exchangeable Bonds and HSBC has agreed not to purchase any further Exchangeable Bonds or any of the US$150,000,000 four per cent. Convertible Guaranteed Bonds due 2002 issued by Lai Sun International Finance (1997) Limited and guaranteed by LSD (the ‘‘Convertible Bonds’’). Accordingly, LSD’s indebtedness and security position vis-a`-vis HSBC has not materially changed.

The repurchased bonds have been cancelled pursuant to the terms and conditions of the Exchangeable Bonds.

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The repurchase of Exchangeable Bonds referred to above is independent of the proposed privatisation of eSun Holdings Limited and is not related to the meetings of holders of the Exchangeable Bonds and of the Convertible Bonds referred to in the Company’s announcement dated 24th April, 2003.

Share Price Movement

This statement is made at the request of The Stock Exchange of Hong Kong Limited.

We have noted the decrease in the price of the shares of the Company on 25th April, 2003 and wish to state that we are not aware of any reasons for such decrease.

We also confirm that there are no negotiations or agreements relating to intended acquisitions or realisations which are discloseable under paragraph 3 of the Listing Agreement, neither is the Board aware of any matter discloseable under the general obligation imposed by paragraph 2 of the Listing Agreement, which is or may be of a price-sensitive nature.

Made by order of the Board of LSD the directors of which individually and jointly accept responsibility for the accuracy of this statement.

By Order of the Board Lai Sun Development Company Limited Yeung Kam Hoi Company Secretary

Hong Kong, 25th April, 2003

Please also refer to the published version of this announcement in the (The Standard)

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