The Stock Exchange of Hong Kong Limited takes no responsibility for the contents of this announcement, makes no representations as to its accuracy or completeness and expressly disclaims any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

The Directors of Shui On Construction and Materials Limited refer to the announcement of the Company dated 4 July 1997 and the circular issued to the Company's shareholders dated 23 July 1997 with respect to the acquisition by Kotemax Limited, a wholly owned subsidiary of the Company, from Kwong Nam Textile Limited of the property at Nos. 54-56 Tsun Yip Street, Kwun Tong, Kowloon for a cash consideration of HK$155,000,000. Completion of the acquisition is scheduled to take place on or before 27 November 1997.

The Directors wish to advise that, on 27 November 1997, Kotemax entered into a supplemental agreement with Kwong Nam, pursuant to which the completion date of the acquisition is extended to 1 April 1998 and a further cash payment of HK$23,250,000 was made by Kotemax to Kwong Nam upon signing of this supplemental agreement and the balance of the consideration of HK$116,250,000 will be payable in cash on the extended completion date. All other major terms and conditions of the acquisition remain unchanged.

With the recent financial upheaval in Hong Kong, Kwong Nam has agreed to extend the completion date of the acquisition of the property and the above extension will effectively reduce the Group's cost of acquisition. The Directors consider it in the best interest of the Group.

The Group currently has bank deposits of approximately HK$750 million. The acquisition will be financed by the Group's internal resources.

It is presently intended that, upon completion of the acquisition, approximately one-third of the property will be utilised by the Group and the remaining areas will be held as long term investment to generate steady and recurrent rental income and to cope with the Group's future expansion.

By Order of the Board
Wong Yuet Leung, Frankie
Vice-chairman

Hong Kong, 27 November 1997