Hongkong Land US$350 Million Convertible Bond Issue Announced

The number of New Shares that will be issued by the Guarantor in the event of the full conversion of the Convertible Bonds is 103,896,104 (based on the initial conversion price of US$3.85 per Share and assuming the exercise of the Option). This represents approximately 4.53 per cent. of the issued share capital of the Guarantor as at 5th December 2005, and approximately 4.33 per cent. of the enlarged issued share capital of the Guarantor.

The estimated net proceeds (after deduction of fees, commissions and administrative expenses) of the issue of the Convertible Bonds are estimated to be approximately US$346.0 million (which will increase to US$395.5 million if the Option is exercised in full), and will be used by the Group for general corporate purposes.

Completion of the issue of Convertible Bonds is subject to the satisfaction and/or waiver of the conditions precedent contained in a subscription agreement to be signed between the Issuer, the Guarantor and the Lead Managers.

The closing date for the issue of the Convertible Bonds is expected to be on or around 21st December 2005.

Jardine Strategic Holdings Limited ("JSH") currently has an interest of 45.1% in the issued share capital of the Guarantor. JSH has confirmed its intention to purchase up to 10.5 million ordinary shares of the Guarantor on 7th December 2005 and to purchase up to a further 7.3 million ordinary shares thereafter. JSH may therefore acquire in aggregate up to 17.8 million ordinary shares by 31st December 2005. The proposed acquisitions are in accordance withJSH's ongoing programme of purchasing shares in the Guarantor conducted in accordance with the rules contained in the Bermuda Takeover Code applicable to the Guarantor.