Sino-Ocean Land increases 49% stake in the Red Star Project

Sino-Ocean Land Holdings Limited announces its plan to purchase 49% stake of the Red Star Project in Dalian from the other stake-holding company, and will wholly own the project after completion of the transaction. Meanwhile, Sino-Ocean Land also announces its intention to purchase 100% interest of two residential projects in Dalian. The total consideration of the above transactions is RMB1.2 billion.

The Red Star Project is one of Sino-Ocean Land s two projects in Dalian, with a total GFA of 1,541,638 sq. m. Located in the Binhai New Zone to the south of the Dalian Economic and Technological Development Area, with the Dalian Bay in the south and backed by mountains, the project enjoys spectacular natural surroundings.

The cross-sea bridge in Dalian Bay will be completed next year; and construction of the cross-sea tunnel connecting downtown Dalian will start in 2013, providing the project with a convenient transportation network. The project is now under construction and will be developed into a large-scale high-end community with residential and leisure facilities.

It will make its debut for first phase sale in December 2008.

Dalian is the leading city in Northeast China in trade, commerce and tourism, recording a remarkable GDP growth of 17.5% in 2007 to RMB 313.1 billion. Dalian residents disposable income per capita also grew by 13.2%.

Well aware of the considerable potential of Dalian market, the Company also purchased 107,516 sq. m of land reserve in the Xiangsongyuan Project in Zhuanghe City in Dalian, and 17,123 sq. m in the Xishan Redevelopment Project in the Dalian Economic and Technological Development Area. The first phase sale of Xiangsongyuan project has already been launched.

The Company will settle 60% of the total consideration (equivalent to RMB720 million) by issuing 202 million new shares at not less than HK$4.04 per share (calculated by the unaudited book value of net asset stated in the interim results); while the remaining 40% will be settled by RMB480 million cash in installments

Mr. Li Ming, Chief Executive Officer of Sino-Ocean Land, stated that Dalian is an essential constituent of the Company s Pan-Bohai Rim development strategy. Ocean Prospect, another Sino-Ocean Land s project in Dalian, has been highly praised by the market since launching, making Sino-Ocean Land a leading brand in the Dalian real estate market and also strengthening our confidence in the Red Star Project and the other two projects.

The transactions need a relatively small amount of cash and are being conducted at the optimum time at a reasonable price. We will continue to enhance the brand recognition of Sino-Ocean Land in Dalian and reinforce our leading position in the Pan-Bohai Rim market.