Statement re litigation

Hidong Estate PLC
16 January 2006


                               Hidong Estate PLC

                   Litigation re proposed sale of Plantation

For immediate release

16 January 2006

Further to the announcement of the proposed disposal of the Company's Plantation
on 14 October 2005 and its subsequent approval by the Estate Land Board
(referred to in the interim statement announced on 28 December 2005), the
Directors announce that the Company, whilst being in the process of preparing
for an Extraordinary General Meeting to seek shareholders' approval on the
transaction, has been served with an ex parte mandatory injunction dated 6
January 2005 obtained by the Purchaser in the High Court of Malaya at Seremban.
The order however was only served on the Company on 13 January 2006. The said
order provides that the Purchaser can pay the Balance Purchase Price of RM 8.77
million into court, which it did on the 12 January 2006, whereupon the Company
is required to give vacant possession of the Land and buildings and the original
title thereto to the Purchaser within 48 hours, under threat of contempt
proceedings in the event of a non compliance. The order also provided that the
Company can only apply for receipt of the Balance Purchase Price from the court
after registration of the transfer to the Purchaser and its charge to its
financier. The above are material contradictions of the terms of the sale and
purchase agreement.

The Company's solicitors have immediately taken up the matter with the Purchaser
and its solicitors and the matter is ongoing. Further announcements will be made
as appropriate.





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