Sales strategy to sell to locals comes to fruition

Singapore, 7 March 2003 - CapitaLands latest residential development in Shanghai, Summit Residences, has been chalking up fast sales with new units sold as soon as they were released. First launched in October last year, about 90% of the 532 units released to-date has been sold. Located next to the Lujiazui financial district in Shanghai close to Times Square Pudong, the 913-unit Summit Residences is the third phase of the Chrysanthemum Park development. Phase 1 (Chrysanthemum Park) is fully-sold whilst phase 2 (Summit Panorama) has only some balance units.

CapitaLand has adopted strategy where the sale of its homes is targeted at primarily the local residents. The company seeks to build homes tailored to meet the lifestyles of the locals. In China, the company sells primarily to the Chinese nationals, in Australia to the Australians, and similarly so for the other gateway cities in which the Group operates.

About 87% of the buyers for Summit Residences are Chinese nationals. They also form the largest group of buyers at Summit Panorama at 80%. About half of the buyers have an average monthly family income of between RMB10,000 to RMB20,000. The buyers identified the three most important factors that influenced their purchase decisions as design and layout; price; and location.

CapitaLand has six residential projects in its China stable, providing about 5,000 homes. These projects are either completely sold-out, or close to doing so. In the pipeline for development are three prime sites which can build another estimated 4,000 over units. These sites are located in Changning and Xuhui districts in Shanghai and Chaoyang district in Beijing. Over 1,000 units from these sites are slated for released this year.

This release may contain forward-looking statements that involve risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, availability of real estate properties, competition from other companies and venues for the sale/distribution of goods and services, shifts in customer demands, customers and partners, changes in operating expenses, including employee wages, benefits and training, governmental and public policy changes, and the continued availability of financing in the amounts and the terms necessary to support future business. You are cautioned not to place undue reliance on these forward-looking statements, which are based on the current view of management on future events.