Oriental City Group PLC

Disposal of interest in subsidiaries


Date: 21 October 2011

                            Oriental City Group Plc                            

                     Disposal of interest in subsidiaries                      

Oriental City Group plc (PLUS: OCGP) ("the Company"), is pleased to announce
that Oriental City Group Asia Limited ("OCG Asia"), a wholly owned subsidiary
of the Company, has entered into a sale and purchase agreement (the
"Agreement") as at the date of this announcement to dispose of the entire
issued share capital, of Oriental City Group Hong Kong Limited ("OCG HK (BVI)
"), a company incorporated in British Virgins Islands, to Mr. Yu Chun Fai ("Mr.
Yu") a former director and former substantial shareholder of the Company.

As at the date of this announcement, OCG HK (BVI) is an investment holding
company with two wholly owned subsidiaries, Oriental City Group Limited ("OCG
HK") and Oriental City Group Bank Limited ("OCG Bank"), which were incorporated
in Hong Kong and Union of Comoros respectively. As such, all OCG HK (BVI), OCG
HK and OCG Bank (collectively referred to as "OCG HK Group") were disposed to
Mr. Yu (the "Disposal"). The consideration for the Disposal is HK$100, which
was settled fully by cash upon signing of the sale and purchase agreement.

There has been no trading business in the OCG HK Group in recent years. For OCG
Bank, a banking licence was obtained but no banking business was carried out.
The licence was therefore fully written off in prior years. Waivers of amounts
due from and due to group companies were made. As at 30 September 2011, the net
liabilities attributable to equity holders of the Company from the OCG HK Group
after the waiver were above HKD12 million. As such, the Disposal of the OCG HK
Group at the consideration of HKD100 will result in a gain on disposal.
Therefore, the directors of the Company are of the view that entering into the
Agreement is in the interests of the Company and shareholders as a whole. The
proceeds from the Disposal will be used as the working capital of the Company.

The Directors of Oriental City Group Plc accept responsibility for the contents
of this announcement.

For further information, please contact:

Oriental City Group Plc
Anthony Mak
Tel: +852 2546 8808
Email: [email protected]

Alfred Henry Corporate Finance Limited
www.alfredhenry.com
Jon Isaacs
Tel: +44(0)20 7251 3762

Alfred Henry Corporate Finance Limited is the PLUS Corporate Adviser to the
Company.
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