Forte Successfully Placed an aggregate of 146 602 687 New H Shares

The Company completed an equity financing in a Block Trading method in international capital market on 24 February 2004. On the same day, the Company entered into the Share Placing Agreement with Morgan Stanley in connection with the Placing and placed an aggregate of 146 602 687 new H Shares in the capital of the Company to investors at HK$2.

82 per H Share. The Placing Price represents a discount of approximately 4.41% to the closing price of HK$2.95 per H Share quoted on the Stock Exchange on 24 February 2005, being the latest trading day immediately prior to the date of the Share Placing Agreement. The Placing Shares represent approximately 20% and 6.

64% respectively of the existing H Shares in issue and the share capital of the Company prior to the Placing. The net proceeds of the Placing will be approximately HK$405.10 million, representing a net placing of about HK$2.76 per Placing Share. It is the current intention of the Directors to apply the full amount of the net proceeds for the funding of the development of the Company s property development projects.