National Electronics Holdings Limited — M&A Activity 2007

Aug 1, 2007

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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CHINESE ESTATES HOLDINGS LIMITED

(Incorporated in Bermuda with limited liability) (Stock Code: 127)

ANNOUNCEMENT OF TERMINATION OF TALKS AND END OF OFFER PERIOD PURSUANT TO THE TAKEOVERS CODE

Reference is made to the announcements of Chinese Estates Holdings Limited (the "Company") dated 3 July 2007 and 4 July 2007 regarding expressions of interest in relation to the possible acquisition of the Company received from a number of third parties.

The board of directors (the "Board") of the Company announces that talks with all third parties in this connection have now terminated because the terms of potential transaction resulting from expressions of interest were not deemed suitable for further consideration.

Accordingly, the offer period for the purpose of the Hong Kong Code on Takeovers and Mergers ended on 1 August 2007.

By Order of the Board Lam Kwong-wai Company Secretary

Hong Kong, 1 August 2007

As at the date of this announcement, the Board comprised Mr. Joseph Lau, Luen-hung and Mr. Lau, Ming-wai as Executive Directors, Ms. Amy Lau, Yuk-wai as Non-executive Director and Mr. Chan, Kwok-wai, Mr. Cheng, Kwee and Ms. Phillis Loh, Lai-ping as Independent Non-executive Directors.

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

Website: http://www.chineseestates.com