ANNOUNCEMENT in relation to the matter of Peregrine Investments Holdings Limited (in liquidation) proceeding to the third stage of the de-listing procedures as stipulated under Practice Note 17 of the Exchange Listing Rules

Regulatory

12 Jan 1999

ANNOUNCEMENT

In relation to the matter of Peregrine Investments Holdings Limited

(in liquidation)

Proceeding to the third stage of the de-listing procedures

As stipulated under Practice Note 17 of

The Exchange Listing Rules

The Stock Exchange of Hong Kong announces that effective from the date of this announcement, Peregrine Investments Holdings Limited (in liquidation) will be put into the third stage of the de-listing procedure in accordance with Practice Note 17 of the Exchange Listing Rules.

Pursuant to the De-listing Procedure, the Company will be given a final six months for the submission of a valid resumption procedure. If the Company does not put forward a valid resumption procedure by 12 July, 1999, being six months from the date of this announcement, the Exchange intends to cancel the listing of the Company.

The Exchange announces that effective from the date of this announcement, the Company will be put into the third stage of the De-listing Procedure in accordance with Practice Note 17 of the Exchange Listing Rules. Practice Note 17 formalises the procedures to be adopted in dealing with long suspended companies.

Dealing in the shares of the Company has been suspended since 7 January, 1998. The Company filed for liquidation on 13 January, 1998. Therefore, the Company's shares have effectively been suspended for approximately twelve months. Since its suspension, the Company has not been able to implement a valid resumption proposal. A valid resumption proposal means a proposal that, if it were implemented, would enable an issuer to demonstrate that it complies with paragraph 38 of the Listing Agreement. Paragraph 38 of the Listing Agreement requires an issuer to carry out a sufficient level of operations or have tangible assets of sufficient value and/or intangible assets for which a sufficient potential value can be demonstrated to warrant the continued listing of the listed company's securities on the Exchange.

As the Company is being wound up and its assets realised by the Liquidators with a view to distributing the proceeds to creditors, the only significant activity of the Company at the moment is that the Liquidators have been disposing the assets of the Company. The Company will eventually have no assets left and will be dissolved. Accordingly, the Company will now proceed to the third stage of the De-listing Procedure. The Company will be given a final six months for the submission of a valid resumption proposal. If the Company does not submit a valid resumption proposal by 12 July, 1999, the Exchange intends to cancel the listing of the Company. The Liquidators have stated that they do not object to the cancellation of the Company's listing.

The Exchange will make a further announcement in due course if the de-listing takes place.

Corporate Communications Department

Updated 12 Jan 1999