Bangkok--Mar 4--Hopewell Further to previous announcements made by Hopewell Holdings Limited (the "Company") in relation to the Bangkok Elevated Road and Train System Project (the "BERTS" Project), the board of directors of the Company wishes to provide the following additional information relating to the status of the BERTS Project. 1. On Wednesday. 28 January 1998, Hopewell (Thailand) Limited, a wholly owned subsidiary of the Company and the project company responsible for the development of the BERTS Project, received a letter dated 27 January 1998 from the Ministry of Transport and Communications, Thailand ("MOTC") and the State Railway of Thailand ("SRT") (the "Letter"). 2. In the Letter, MOTC and SRT purported to terminate the BERTS Project's Concession Agreement dated 9 November 1990 (as amended) between Hopewell (Thailand) Limited ("HTL") and MOTC and SRT (the "Governmental Party") and purported to reserve the right of the Governmental Party to claim damages from HTL. The Governmental Party futher stated in the Letter that HTL was forbidden to enter the concession land (the "Concession Area") with immediate effect. 3. The Concession Agreement contains detailed procedures contained in Clause 27 relating to the termination of the Concession Agreement. Clause 27.1 states "In terminating this Agreement the following procedures must be followed in the respective order as stated hereinunder." Those procedures can be summarised as follows:- a) In the event that the Governmental Party wishes to terminate the Concession Agreement, it must issue a written notice to HTL stating the grounds for termination and the details of the circumastances leading to such grounds. b) HTL would then have a minimum of 90 days from the receipt of such notice to remedy any default. c) If a dispute exists as whether the Governmental Party has grounds to terminate the Concession Agreement, that dispute would be referred to arbitration in Bangkok in accordance with the Rules on Arbitration, Office of Arbitration, Ministry of Justice (or such other rules as may be agreed upon by the parties). 4. The Concession Agreement also provides in Clause 29 that "In the event that the Government requires that the System or the Concession Area be confiscated or otherwise expropriated, this Agreement shall then terminate, and in such event the Company shall be compensated for damage by the Governmental Party. 5. HTL replied to the Letter by a letter dated 30 January 1998 in which it was stated that HTL inferred that the Governmental party believed that grounds existed which could justify termination of the Concession Agreement in accordance with Clause 27. 6. A further letter dated 25 February 1998 (the "Confirmation") has now been received by HTL from MOTC and SRT. In the Confirmation, the Governmental Party confirms that the termination of the Concession Agreement is an exercise of a righ to terminate the Agreement under procedures prescribed by law, and the Concession Agreement therefore ceases to exist and arbitration is not required. 7. HTL and its legal advisers are carefully considering the terms of the Confirmation and HTL's response to it. However, in view of the fact that the termination procedures of Clause 27 are not being followed by the Governmental Party, and that HTL has been required to vacate the Concession Area, HTL in conjunction with their legal advisers are considering whether the action of the Governmental Party is a confiscation or expropriation within the terms of Clause 29. HTL is now taking steps to prepare to remove their plant and equipment from the Concession Area. Where Clause 29 applies, HTL will be entitled to claim compensation and damages from the Governmental Party. 8. The MOTC and SRT have also by a letter of 25 February 1998 demanded payment of the sum of Baht 500 million within 15 days by the Bangkok Bank PCL (the "Bank") pursuant to the terms of a Letter of Guarantee issued by the Bank dated 6 December 1991. The terms of that demand are being considered by HTL and its legal advisers, and in the meantime the Bank has been requested not to make any payment under the Letter of Guarantee. 9. HTL regrets that the Governmental Party has not followed the contractual procedures for termination, but has taken action which effectively confiscates or expropriates the Concession. HTL has invested approximately US$600,000,000 in the BERTS Project. HTL will be seeking appropriate compensation. 10. HTL would like to thank the people of Thailand for their support, and express their hope that despite the current problems, the BERTS Project can survive and traffic conditions in Bangkok be improved. HTL remains ready and willing to play a role ine the Project. 11. In due course, the Company will issue a further announcement to keep shareholders fully informed of the course of action to be taken by the Company in connection with the proposed termination of the Concession Agreement by the Governmental Party. Issued by Hopewell Holdings Limited Contact Hong Kong : Rosemary Sayer, (852) 9096-4432 Paul Marriage, (852) 9026-4275 Bangkok : Bozell Paterson Company Limited Public Relations Department, (662) 637-0270-9 End.