ZHENGZHOU INTERNATIONAL CONVENTION AND EXHIBITION CENTRE TO BENEFIT FROM PRIVATE PROFESSIONAL MANAGEMENT

Zhengzhou, China 21 May 2006. – Zhengzhou International Convention and Exhibition Company Limited (ZCL), a state owned enterprise under the Municipal Bureau of Commerce in Zhengzhou, China, today signed an agreement for the management and operation of the prestigious Zhengzhou International Convention and Exhibition Centre (ZZICEC) in the heart of the city’s rapidly emerging Central Business District.

Mr Wang Wenchao, Secretary of Municipal Party Committee and Mr Cliff Wallace, Chairman of the Hong Kong-Shanghai Venue Management (Zhengzhou) Limited at the ZZICEC signing ceremony on 21 May 2006.

Under the agreement, Hong Kong-Shanghai Venue Management (Zhengzhou) Limited (VMZL) will manage and operate this recently completed 227,600 square metre venue for an initial term of 15 years.

VMZL, a private professional venue management company registered in the People’s Republic of China (PRC), is a joint venture between Hong Kong Exhibition and Convention Venue Management China Limited (HKVMCL) - the majority shareholder - and INTEX Shanghai Company Limited (INTEX Shanghai). HKVMCL is a sister company to Hong Kong Convention and Exhibition Centre (Management) Limited (HML). VMZL is chaired by Cliff Wallace, managing director of HML and a 34 year venue management veteran, with Hugh Scrimgeour, another senior industry figure and INTEX Shanghai’s vice chairman, as its vice chairman.

One of the officiating officials speaking at today’s signing ceremony was Mr Yue Zengpu, Chairman of ZCL. Mr Yue said, "The Zhengzhou International Convention and Exhibition Centre has been awarded the honour of being the Most Promising Exhibition Venue in China. With the signing of a management agreement with a world-class professional venue management company today, the overall operational standard of ZZICEC will definitely see substantial improvement. This will quicken the pace for it to become a leading global venue and will contribute towards a fast and healthy development of Zhengzhou’s exhibition sector."

Addressing Zhengzhou’s leaders, Mr Wallace said, "Throughout the long and detailed planning and negotiations for this important deal, you have shown great openness to international practice. I am thus entirely confident that over the coming years we can together influence the growth for good of the exhibition and meeting industries in Zhengzhou as well as ensuring that this magnificent venue becomes a resounding business success."

Mr Scrimgeour said, "INTEX Shanghai has already fully proved itself in the professional venue management business in Shanghai, Ningbo and Wei Hei. Our strategic expansion to Zhengzhou recognizes the potential of the Chinese exhibition industry for rapid growth. By teaming up with an associated company of the operator and manager of the Hong Kong Convention and Exhibition Centre, a venue regularly acknowledged worldwide as best in its class, we have created a joint venture that can grow Zhengzhou into one of the top six exhibition cities in China, and so realize the ambitions of the city’s leaders."

Mr Wallace stated following the signing, "The staff and management of VMZL are all absolutely thrilled at this opportunity to serve the ZZICEC. This eye-catching centre is the jewel in the crown of the brilliant new city centre that is being created in Zhengzhou."

"Zhengzhou is already a key trade and industrial hub for Central China," Mr Wallace continued. "As well as leveraging this superb geographical location, the ZZICEC has already won praise for its world class international architecture and its highly functional design. Today’s appointment of a seasoned professional venue management company will ensure maximum marketing reach for the venue and help to create a highly trained team with the strongest possible customer focus."

The Zhengzhou International Convention and Exhibition Centre (ZZICEC)

The total rentable space within the ZZICEC exceeds 70,000 square metres and includes two spacious exhibit halls totalling more than 30,000 square metres that can also be readily divided into six smaller halls. Both halls have direct access loading, and Hall 2, which is set above Hall 1, is column free. Adjacent to the entrance to the halls lies a further 30,000 square metres of outdoor exhibition space. The convention area includes a Grand Hall, an international theatre, two small theatres and 17 meeting rooms.

Andrew Garcia, VMZL’s General Manager for the ZZICEC, will head a permanent staff of some 120. A US citizen whose extensive management background includes the successful opening of several hotels in the PRC, Mr Garcia brings to the ZZICEC an unrivalled knowledge of the PRC exhibition and convention scene.

ZZICEC’s early successes

Since its soft opening in October 2005, the ZZICEC has enjoyed several major exhibition successes. These include the 11th Zhengzhou Commodity Fair (第十一屆鄭州全國商品交易會) held 18-20 November 2005, attended by an estimated 300,000 visitors and utilizing a gross area of 60,000 square metres, and the 55th National Pharmaceuticals Fair (PHARMCHINA 第55屆全國藥品交易會), held 19-21 April 2006, attended by 150,000 visitors and utilizing a gross area of 51,000 square metres. These fairs were organized by the Henan Provincial Government and Reed Sinopharm Exhibitions Company Limited respectively.

Upcoming events of major significance include the 31st National Pharmaceutical Equipment Expo (第31屆（2005年春季）全國製藥機械博覽會) from today through 23 May. Anticipated attendance is 80,000, and 72,000 square metres of gross area will be utilized. The China International Medical Equipment Fair (第56屆中國國際醫療器械博覽會) will be held 31 October through 3 November with an expected attendance of 120,000 and utilizing a gross area of 76,000 square metres. These fairs are being organized by the China Association for Pharmaceutical Equipment and Reed Sinopharm Exhibitions Company Limited respectively.

Zhengzhou City

Zhengzhou lies some 700 km south of Beijing. It has 7.16 million inhabitants and is the capital city of Henan Province, which, with over 100 million inhabitants, is China’s most populated province.

The city is a fast developing market in the heart of China’s Central Plains region. As the hub of northern China’s main east-west and north-south road and rail links, it is playing a crucial role in the rapid growth of the PRC economy, and a major renovation is under way at its international airport.

Zhengzhou attracted US$4.4 billion in foreign direct investment in 2005 with its foreign trade rising 21% year on year to US$1.7 billion in 2004.

For information on ZCL, please contact:

Ms Cathy Zhao
Assistant Manager of Executive Office
Tel: (86) 3716808-9809
Fax: (86) 3716808-9810
Email: cathybusy@gmail.com

For information on VMZL and ZZICEC, please contact:

Ms Monica Lee Muller
Director
Tel: (852) 2582 7897
Fax: (852) 2582 7021
Email: monicaleemuller@hkcec.com