Emperor International Holdings & Emperor Entertainment Hotel Announce 2005/06 Interim Results

*  *  *  *

Hong Kong, 16 December 2005 - Emperor International Holdings Limited (SEHK: 163 ADR Symbol: EPRRY) and announced their interim results for the six months ended 31 September 2005 ("Review Period").

HIGHLIGHTS

Emperor International Holdings Limited
-  Turnover rose 18.9% from last corresponding period to HK$496.9 million

-  Profit attributable to shareholders surged 168.5% to HK$446.6 million
-  Rental income increased substantially
-  Strong gains from the revaluation of existing investment properties and development projects in Hong Kong
-  Interim dividend of 5 HK cents

Emperor Entertainment Hotel Limited
-  The Grand Emperor Hotel will commence business in January 2006
-  Gaming vessel the “Golden Princess” achieved promising results
-  Shanghai project received revaluation gain
-  Interim dividend of 1 HK cent

Emperor International Holdings Limited (“the Group” or “EIH”)
For the six months ended 30 September 2005, EIH recorded turnover growth of 18.9% putting its turnover at HK$496.9 million (2004: HK$417.9 million). Profit attributable to shareholders surged 168.5% to reach HK$446.6 million (2004: HK$166.3 million).

Ms. Vanessa Fan, Managing Director of the Group, said, “We are delighted to report that we have achieved encouraging results during the review period. This was mainly due to increased rental income against a recovering property market and gains from the revaluation of our existing investment properties and development projects in Hong Kong. The increased returns from the securities brokerage and consultancy business also contributed to the profit surge.”

Ms. Fan continued, “to ensure our long-term development, we strategically disposed of part of our non-core business during the said period. The move has enabled us to reallocate resources and concentrate on the property and financial businesses with higher profit margins and greater potential for growth.”

Property Development and Investment
This business segment accounted for 12.6% of the Group's total turnover.

As the Hong Kong market continued to improve in the first half of 2005, the Group's property-related operations have seen income growing steadily and significantly. The total income of these related segements amounted to HK$62.8 million (2004: HK$44.5 million) and profit reached HK$511.2 million (2004: HK$187.9 million). Among the contributions, turnover from leasing investment properties rose 42% to approximately HK$62.6 million (2004: HK$44.2 million) while profit soared 46% to approximately HK$54.3 million (2004: HK$37.2 million). The Group also received contribution from property revaluation of HK$457.3 million.

The total value of the Group's property portfolio in Hong Kong, of an aggregate gross floor area of over 800,000 square feet, exceeded HK$4.4 billion.

The Group had recently acquired two properties in Macau for long term rental income. It also planned to commence construction of Phase II of Riverside Garden at Xiamen, PRC in the first half of 2006. During the Period, the Group had completed the basement excavation and foundation works of the commercial complex redevelopment at the Lido, Repulse Bay. In addition, the Group had acquired an additional 23,555 square feet land adjacent to its development site in DD210 in Sai Kung. The Group plans to develop high-end residences at the site with a total floor area increasing to 32,670 square feet.

HotelThe Emperor (Happy Valley) Hotel reported a turnover of approximately HK$28.6 million making up mainly of rental income from its 150 guestrooms, karaoke lounge and Chinese restaurant. Subsequent to the completion of guestroom refurbishment, profit reached HK$501,000 and cashflow amounted to HK$7.4 million.

Answering to the popular demand for karaoke facilities, the Group had converted a floor in the Emperor Hotel in December 2005 into karaoke rooms and its expects these additional karaoke rooms to bring in higher revenue.

Securities Brokerage and Consultancy Services
This business segment accounted for 12.7% of the Group's total turnover. The financial market sustaind growth momentum during the review period, a major contributing factor to the segment's strong performance. Turnover of the segment reached HK$63.0 million (2004: HK$55.8 million) with profit amounted to HK$43.4 million (2004: HK$35.5 million).

The Group will expand in the trading of commodity futures and is preparing to diversity its revenus stream by launching asset management services.

Disposal of non-core businesses
In September 2005, the Group announced the disposal and discontinuation of non-core businsses in its bid to focus on major and more profitable operations. These businesses include wholesaling and retailing of furniture, publishing and printing, restaurant and sales of marine products. The disposals and discontinuation were expected to generate capital resources of approximately HK$100 million to the Group.

Mr. Donald Cheung, Property Director of the Group, commented, "We are confident that this strategic move will enable us to streamline our overall operation on a more foucsed business model. More importantly, we will enjoy more fruitful results with the key business sectors, especially property development and investment which is flourishing, benefiting from the reviving economy of Hong Kong and the PRC. Going forward, we are awaiting government approval to enlarge the scales of our luxurious sea view residential development project in Sai Kung. We are also ironing out the final construction plans and development issues of the Lido projects with government bodies."

Ms. Fan added, "We are also expecting to receive contributions from our partially-owned Emperor Entertainment Hotel Limited, whose Macau hotel will commence business in January 2006, as well as strong cashflow through divided by the sidsidiary."