New Heritage Enters into Strategic Partnership with Spinnaker by sdfwerte


									For immediate release

    New Heritage Enters into Strategic Partnership with Spinnaker

Hong Kong, August 30, 2006 – New Heritage Holdings Ltd. (“New Heritage” or “the Group”;
SEHK: 95), a Hong Kong-based property developer with key focus on both Jiangsu Province
and Beijing markets, is pleased to announce that it has entered into a strategic partnership
with Spinnaker Global Opportunity Fund Limited (“Spinnaker”). Spinnaker is a private
emerging markets fund under the Spinnaker Capital Group which manages investment funds
of more than US$4.2 billion globally. It also has invested in several other real estate projects
in Beijing and Qingdao, as well as other parts of the world.

Under a subscription agreement, Spinnaker would subscribe for 65,000,000 new shares of
New Heritage at a price of HK$0.60 per share, representing a premium of approximately
5.26% to its last close of HK$0.57 per share as quoted prior to the announcement. Subject to
the approval of the Stock Exchange of Hong Kong, the subscription shares represent
approximately 10.02% of the existing issued share capital and approximately 9.11% of the
enlarged issued share capital of New Heritage.

Additionally, New Heritage Development Limited (“NHDL”), a wholly-owned subsidiary of
New Heritage, and Spinnaker have entered into a share transfer agreement pursuant to which
NHDL would transfer its 40% interest in equity and shareholders’ loans in its wholly-owned
foreign enterprise subsidiary project company, Suzhou New Heritage Wuzhong Limited
(“NH Wuzhong”), to Spinnaker for a total sum of HK$31,200,000. Spinnaker also commits
to further finance RMB30,000,000 to NH Wuzhong for future construction costs if necessary.

Net proceeds raised from the subscription and share transfer arrangements, which stand at
approximately HK$37.3 million and HK$30 million respectively, will be used to fund the
Group’s general working capital and future property development and investment projects in
Mainland China.

Commenting on the two new initiatives, Mr. CF Tao, Chairman of New Heritage, said, “We
are delighted to welcome Spinnaker as our strategic partner. We both share the same
aspirations for the future growth and business development of the Group. As we pursue our
strategic expansion plans, Spinnaker, being an experienced partner in companies with high
growth potential, will be instrumental in assisting the Group to fulfill its goals.”

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“Spinnaker’s investment clearly demonstrates its confidence in the PRC real estate industry
and business prospects of New Heritage. Going forward, we will work closely with
Spinnaker to explore more areas of co-operation including co-bidding of projects”

“As the Chinese economy continues to boom, the outlook for the real estate market is still
encouraging. We believe New Heritage is best positioned to capitalise on a forthcoming wave
of opportunities and accomplish even greater achievements in the months ahead.” Mr. Tao

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About New Heritage
Founded more than 20 years ago, the Group is a Hong Kong-based conglomerate engaging in
the development and investment of high quality projects in niche markets with key focuses on
Suzhou and Beijing. Its major property development projects in Suzhou, Suzhou Garden
Villa and Suzhou Garden Court, have earned the Group numerous recognition and awards in
the industry. The Group’s listed entity New Heritage Holdings Ltd. has been listed on the
Main Board of the Stock Exchange of Hong Kong since 2 December 2005.

About Spinnaker
Spinnaker Capital Group manages more than US$4.2 billion worth of assets to date.
Incorporated in the BVI with limited liability and managed by Spinnaker Capital Limited and
Spinnaker Asset Management Limited, Spinnaker has recorded a cumulative growth of
252.21% and an annual growth of over 20% since its inception in February 2001. For more
information, please visit Spinnaker’s website at

About NH Wuzhong
NH Wuzhong is a wholly-owned foreign enterprise established in the PRC in January 2006
and its principal business activity is the development of a residential and commercial
property project on a piece of land with an aggregate site area of approximately 41,579 sq. m2
in Wuzhong District, Suzhou, the PRC.

For further information, please contact:
Hill and Knowlton Asia Limited
Gary Li                                         Elisa Fong
(852) 2894 6239/ 9652 9002                      (852) 2894 6322/ 9528 9727        

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