Chongqing, October 25, 2005 : Today marks the official groundbreaking of the construction work for "Chongqing Tiandi", Shui On Land's vast redevelopment project in Chongqing. The project is the Shui On Group's flagship property company's first large-scale development in Western China, in line with Chongqing's long-term plan for its internationalization and mission to become China's "Economic Centre of the West".

The groundbreaking ceremony of "Chongqing Tiandi" was held at the construction site in Hongyan Village, near the Hualong Bridge in Yuzhong District, Chongqing. The Executive Deputy Mayor of Chongqing Municipal Government, Mr. Huang Qifan, Deputy Mayor Mr. Xie Xiaojun and Chairman of Shui On Land, Mr. Vincent H. S. Lo officiated at the ceremony. Also attending the ceremony were key members of the Yuzhong District Party Committee, District People's Congress, District Government and CPPCC District Committee as well as representatives from relevant departments of the municipal government.

"Shui On Land has actively participated in the redevelopment of 'old cities' throughout the Chinese Mainland. In each of our projects, we have made a strong effort to integrate the specific characteristics of the local environment, coordinating them in line with the future development plans and 'blueprints' of local cities," said Mr. Lo at the ceremony.

"In Chongqing, Shui On Land will leverage our experience by introducing international design and planning, state-of-the-art construction technology and best-quality management practices with the mission to establish a world-class project, and help support Chongqing's development so that it will eventually excel in the world arena," continued Mr. Lo.

"Chongqing Tiandi" is located in the city centre of Chongqing with close proximity to the cultural and educational centre of Chongqing. Covering a land area of approximately 1.3 million square metres with a total gross floor area of over 3 million square metres, it is the only plot of land which is both close to the city centre and available for large scale development. Facing Jialing River in the north, there is nearly 2 kilometres of coastal waterfront, backed by mountains. The project is an extension and supplement of the Liberation Army Stele CBD which will optimize the city environment, expand the greenery and ultimately transform it into a world-class multi-purpose district for residential, commercial, cultural, tourism and leisure use. Through its advanced office building facilities and commercial exhibition floor areas, it provides a convenient and cutting-edge working environment for innovative, high-tech enterprises.

As part of the central government's strategic drive to develop the Western Region, Chongqing has been named the fourth direct administrative municipality. In future, it will assume the strategic role of the economic centre in the upstream Yangtze River area and the southwestern regions. In recent years, the Chongqing Municipal Government has adopted a new development plan for its future city development, with an international vision. It has vigorously promoted the economic development and urbanization of Chongqing, and made significant progress towards its goal of becoming the "Economic Centre of the West".

"Chongqing Tiandi" is one of the largest 'old city' redevelopments in Chongqing, and Shui On Land has selected leading planning and architectural designers from around the world and from within China to work on this vast project. The design concept will be based on the Chongqing's traditional hill-town architecture, merged seamlessly with modern architectural characteristics.

Shui On has appointed the renowned American design firm Skidmore Owings and Merrill (planning consultant for "Shanghai Xiantiandi" and "Knowledge and Innovation Community") to be responsible for the overall planning of "Chongqing Tiandi"".

This project will provide high quality commercial facilities and residential buildings for international financial institutions and commercial organizations that will be based in Chongqing. It will be positioned as a high-end district with international standards, supported by comprehensive amenities and extensive services, to enhance the integrated competitive advantages of Chongqing.

The estimated period of development of "Chongqing Tiandi" is 10 years. Phase one of the development is a luxury residential district covering an area of 50,000 square metres. After its completion, "Chongqing Tiandi" will not only help enhance the image of the Yuzhong Peninsula, but also act as an international "showcase" for Chongqing in the manufacturing industry.

About Shui On Land

Established in 2004 and headquartered in Shanghai, Shui On Land Limited is a substantial property company consolidating prime developments of the Shui On Group in the Chinese Mainland. With a proven track record in the Chinese Mainland and Hong Kong, the Shui On Group is well established as one of China's visionary and innovative property developers. Backed by a prestigious group of co-investors, which includes ERGO Tru Asia, Metro Holdings, Citigroup Venture Capital International, Ocean Equity Holdings, Value Partners Funds, Standard Chartered Bank, Shanghai Hotel Investments and Jebsen & Company, Shui On Land leverages the Group's proven track record to provide high-quality growth opportunities.

Shui On Land's projects feature unique commercial, residential and mixed-use developments. The Company focuses on two key business segments in the Chinese Mainland market: City Core Development Projects, which are large-scale, mixed-use redevelopments, and Integrated Residential Development Projects, which are high-quality developments offering full amenities and consistent with overall city infrastructure planning. For further information, please visit www.shuionland.com.


Contacts

Hong Kong - Stephanie Lin
Tel: (852) 2879 1866
Fax: (852) 2787 4211
Email: corpcomm@shuion.com.hk

Shanghai - Maggie Zhao
Tel: (86 21) 6386 1818
Fax: (86 21) 6385 5936
Email: gcc.sh@shuion.com.cn

Chongqing - Michelle Mi
Tel: (86 23) 8906 1818
Fax: (86 23) 8906 9866
Email: michelle.mi@shuion.com.cn