Guangzhou Investment Acquired Two Quality Residential Land Sites in Nansha, Guangzhou

GFA for development increased by 610,000 sq. m.
Continued to accelerate development and sales
for property development business

(Hong Kong, 14 December 2006) Guangzhou Investment Company Limited ( GZI or the Group ; stock code: 0123), one of the ten largest integrated property developers in Guangzhou, is pleased to announce its successful acquisition of two quality land sites located in Nansha Economic and Technology Development Zone, Guangzhou city, the PRC, with a total consideration of RMB 865 million. The acquisition increased the Group s GFA for development by 610,000 sq.m..
The two land sites are located in the Nansha Economic and Technology Development Zone, Guangzhou Province. Site area of the two land sites were approximately 138,000 sq. m. and 207,000 sq. m respectively, with an expected total gross floor area ( GFA ) of approximately 239,000 sq. m. and 371,000 sq.m. respectively.
GZI, through its 95% owned subsidiary, acquired the above mentioned land plots with a consideration of RMB 561 million and RMB 304 million respectively. The acquisition will be settled through internal resources. The land cost was equivalent to RMB1,270 per sq. m. and RMB1,510 per sq. m. respectively. The Group will develop the project into residential units and commercial podium. It targets to commence the construction in the first quarter of 2007 and be completed by 2010.
Mr Ou Bingchang, chairman of GZI, said, We are delighted with the acquisition of these two quality land plots and are fully confident in the development of the project. Being the emerging district with development focus in Guangzhou city, Nansha Economic and Technology Development Zone possesses immense development potential. As more and more multi-national enterprises established their regional headquarters in Nansha, the Guangzhou government expects the population in the district will rise to 700,000 by 2010, bringing huge demand for residential properties. Capitalizing on our competitive advantages of low land cost, we will continue to increase our land bank through acquisitions with an aim to accelerate the development and sales for real estate business. We strive to achieve sustainable development for the Group in order to reinforce our position as one of the leading property developers in Guangzhou.

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About Guangzhou Investment Company Limited

GZI was listed on The Stock Exchange of Hong Kong Limited in December 1992. The controlling shareholder of GZI, Yue Xiu Enterprises (Holdings) Limited, is the resident entity of the Guangzhou Municipal People s Government in Hong Kong. The Group has built up several businesses consisting of property, paper and toll road mainly located in Guangzhou. These businesses all have substantial market share in Southern China. Guangzhou Investment spun off some investment properties and listed as GZI Real Estate Investment Trust (stock code: 0405) in Hong Kong in December 2005.
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