Clarification on project in Shanghai

CI refer to your letter dated 24 July 2001, and our discussion today.

In China, there is no concept of "issued and paid-up capital" but that of registered capital. As stated in our earlier announcement of 19 July 2001, the registered capital of the new joint venture company, Shanghai Centrepoint Jingan Realty Co Ltd is US$20m. The registered capital will be paid up in cash by the shareholders progressively when required. CPL China's share of the registered capital, on full payment, will be 95% of US$20m ie. US$19m.

The principal terms of the Land Use Rights Contract, as stated in our earlier announcement, is the acquisition of the land at RMB252 million (S$55.6m) which has a plot ratio of 5 and a tenure of 70 years.

The price was arrived at on 'a willing buyer willing seller' basis after some negotiations between the parties.

Yours faithfully
Lim Joke Mui (Mrs)
Company Secretary