Hong Kong, 30 April, 2003 - The Shui On Group, one of Asia's leading developers, follows on the success of its celebrated Shanghai Xintiandi development with the opening of the Garden Phase of Xihu Tiandi, a multi-use, leisure and lifestyle destination, in Hangzhou, Zhejiang Province. The entire Xihu Tiandi project represents a total investment of RMB 1 billion (around US$120 million), of which US$5.5 million has been invested in the development of the Garden Phase.

Xihu Tiandi covers a total area of 50,000 square metres, with a total gross floor area of 58,000 square metres. The Garden Phase, consisting of ten buildings in a 30,000-square-metre park, opened today. The project represents the latest move in the Group's overall Mainland strategy - to create, in China's major cities, multi-service communities incorporating F&B, entertainment and retail (and in other cases commercial and residential as well), drawing design inspiration from the unique historical architectural aesthetic of each locale.

"Just as Xintiandi was able to preserve the essence of Old Shanghai while bringing it very much up to date, Xihu Tiandi will retain the serene beauty of ancient Hangzhou while bringing it into the new millennium," said Mr Vincent H S Lo, chairman and founder of Shui On Group. "Xihu Tiandi is a unique development that preserves respect for Hangzhou's rich natural and historical legacy while providing modern comfort and convenience."

Set amidst lush parkland in the southern edge of Hangzhou's famously scenic West Lake, Xihu Tiandi will offer a world-class selection of cafes, fine restaurants, retail shops and nightlife spots in a relaxing garden atmosphere. It is less than two hours away from downtown Shanghai and is connected by a modern superhighway, offering an ideal retreat from the bustle of the city. Hangzhou is a popular vacation destination for Chinese and foreigners alike, with over 30 million visitors annually, including over one million foreign visitors every year.

The architecture of the ten buildings for the Garden Phase of the project reflects a perfect balance of newly built architecture and restored historic structures. Xihu Tiandi has been created with reference to the Southern Chinese architectural style so characteristic of Hangzhou. The subsequent phase of the project will continue the efforts to preserve Hangzhou's traditional architecture, with an emphasis on sustainable development to save nonrenewable energy and conserve the natural environment. The entire Xihu Tiandi project is scheduled for completion in May 2005.

About Shui On Group

Shui On Group, the lead developer of Shanghai Xintiandi, was founded in Hong Kong in 1971 by Mr Vincent H.S. Lo. Through the years he has built Shui On from a small construction company into a diversified group engaged in property development, construction and construction materials with interests in Hong Kong, the Chinese Mainland and North America.