(Hong Kong, 13 June 2001) Shui On Construction and Materials Limited ("SOCAM", stock code: 983) announced that its proposed investment in Rui Hong Xin Cheng ("RHXC"), a quality domestic residential development project in Shanghai, was passed unanimously at a Special General Meeting today. With strong support from shareholders, the company will strive to become a leading developer of quality housing in Shanghai the Chinese Mainland.

Rui Hong Xin Cheng was previously a joint venture project between Shui On Properties Ltd ("SOP", a privately owned business of SOCAM's Chairman Mr. Vincent H.S. Lo), which owned a 99% stake, and Shanghai Zhong Hong (Group) Company Limited. Construction of the project started in 1996 and was expected to be completed in 15 years. The first phase of RHXC will continue to be developed by SOP, while subsequent phases will be developed by SOCAM. SOCAM plans to invest RMB1.4 billion in the second phase, which is located on top of a Metro station scheduled to be completed by the end of 2003. This phase includes an underground car park, shopping centre, clubhouse as well as residential blocks on a site area of about 52,000 square meters. The gross building area totals 237,000 square meters, of which about 160,000 square meters will be for residential units.

Located in the Hong Kou district in Pu Xi, RHXC is close to the Bund and the central business area. With more than 16,000 residential units to be built over the next 10 years, RHXC is expected to provide continuous growth for SOCAM in the future. With the company's solid experience in building large residential estates in Hong Kong and a rising property market in Shanghai, SOCAM is highly confident of RHXC's future success.

Shui On Construction and Materials Limited, a member of the Shui On Group, was listed on the Hong Kong Stock Exchange in 1997. Apart from SOCAM, the Shui On Group has a separate, non-listed property arm with investments in Hong Kong, Beijing, Guangzhou and Shanghai.