For Immediate Release

(HONG KONG, 17 August 1999) Shui On Construction and Materials Limited (SOCAM) has been awarded three new contracts by the Hong Kong Housing Authority (HKHA) and Architectural Services Department (ASD) and expects to receive two more contracts by the end of this month.

The three contracts awarded are: the construction of Public Health Laboratory Centre, Po Lam Housing Development Phase V and Mock-up Centre for Public Rental Housing (PRH) and Home Ownership Scheme (HOS) Modular Flats. Total value of these three contracts is around HK$1,250 million. The gross and outstanding value of works as at 31 July 1999 is HK$14.6 billion and HK$9.7 billion respectively. Upon receiving confirmation letters of two other new contracts by the end of this month, the gross and outstanding value of works will be increased to HK$16 billion and HK$11.1 billion respectively.

The Public Health Laboratory Centre, located at Nam Cheong Street, Shek Kip Mei, Kowloon, includes the construction of a 15-storey laboratory building, comprising 3 levels of carpark, laboratory rooms, offices, multi-function halls, conference and seminar rooms, laboratory furniture and equipment, fitting-out works, etc. The project is planned to be completed by April 2001 and the contract sum is HK$647 million.

The construction of HOS at Po Lam Road Housing Development Phase V includes the construction of three 36-storey New Cruciform Blocks with precast concrete façade on a 3-storey carpark podium. The total number of HOS flats are 1,050 units. The project is planned to be completed by May 2001 and the contract sum is HK$575 million.

The Mock-up Centre for PRH and HOS Modular flats will be situated at Fat Kwong Street, Homantin, Kowloon. The project includes the construction of six one-storey buildings, E&M annex blocks, and 12 mock-up flats. The project is planned to be completed by February 2000 and the contract sum is HK$27.5 million.

The average number of housing units including PRH, HOS and Private Sector Participation Scheme (PSPS) to be provided by the HKHA in the next five years will be around 50,000 per year. Shui On not only earned its reputation in the construction of PRH and HOS, but also possesses a proven track record in the PSPS market. The Richland Gardens, probably still the biggest PSPS project in Hong Kong, was developed and built by Shui On. Another huge PSPS project won by SOCAM last year, the Tseung Kwan O Town Lot No.62 Area 65A, is progressing ahead of schedule. We will continue to actively participate in the tendering of upcoming PSPS projects in 1999/2000.

SOCAM recorded an annual turnover of HK$5,376 million for the year ended 31 March 1999. Profit attributable to shareholders rose to HK$408 million, an increase of 30% over that of the 1997/98 financial year, representing earnings per share of HK$1.57, an increase of 30% over the previous year. Cash on hand as at 17 August 1999 exceeds HK$820 million.

Shui On Construction and Materials Limited 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, the United States, Beijing, Guangzhou and, in particular, Shanghai where it has a land bank of 3.5 million square metres of buildable space in very centrally located sites.

Press Enquiries:
Ronny Pang     2879 1860
Corporate Communications Department