Forte Successfully Acquired Two Beijing Projects

To Capture Development Opportunities and Expand Business Portfolio
(27 September 2004 Shanghai) One of the largest property developers in Shanghai, Shanghai Forte Land Co., Ltd ( Forte or the Group; Stock code: 2337) announces today that it has successfully acquired a low density residential project in Changping, Beijing and Beijing Xidan Jiawei Elegant Garden ( ) project for a consideration of RMB113million and RMB40million (reallocation cost excluded) respectively. The acquisitions will increase the salable areas of the Group s property projects and strengthen the Group s development in areas other than Shanghai.
Forte develops a low density residential project in Changping, Beijing through the acquisition of 69% equity of Beijing Kan Boa Property Development Co., Ltd. The total site area of the project is 193,278 sq.m. while the estimated total gross floor areas is about 100,000 sq.m.. Besides, Forte has acquired 100% equity of Beijing Xidan Jiawei Property Development Co., Ltd. ( ) to develop the Xidan Jiawei Elegant Garden ( ) project with a total site area of 12,750 sq.m. and a total gross floor area of 76,496 sq.m.. The sale of the above two projects will commence in 2005.
Recently, Forte also acquired the land use rights of four pieces of land in Wuxi, Jiangsu province of an aggregate site area of approximately 255,221.6 sq.m., for a consideration of RMB283,857,463, which further expanded the land bank of the Group.
Mr. Fan Wei, President of Forte, said, The macro-economic control measures implemented by the PRC government have accelerated the consolidation of the property industry in the PRC. Leveraging on our strong financial resources, multi-project management model and renowned brand name, Forte prudently analysed and acquired the two projects in Beijing, which further enriched the property portfolio of the Group. These two new projects are expected to contribute sales revenue to the Group in 2005. In view of the strong demand in the PRC s property market, Forte will continue seeking suitable acquisition opportunities of all development projects in Shanghai and surrounding areas of Shanghai so as to capture the opportunities and expand its business, thereby increasing the market share of Forte and bringing fruitful returns to our shareholders.