1. CapitaLand Limited ("CapitaLand") refers to the announcement entitled "Update relating to the Macao Studio City project" issued by eSun Holdings Limited ("eSun") on 31 October 2010 . A copy of eSun's announcement is attached.

2. CapitaLand has invested an effective 20% interest in the Macao Studio City ("MSC") project through East Asia Satellite Television (Holdings) Limited ("East Asia"), a joint venture with eSun. The MSC project is held directly by East Asia and New Cotai LLC ("New Cotai") in the proportions of 60% and 40% respectively through Cyber One Agents Limited ("Cyber One").

3. The legal proceedings commenced by East Asia against New Cotai and others in Hong Kong on 29 October 2009 included a petition that New Cotai transfers its interests in Cyber One to East Asia at a valuation ultimately to be determined by the courts. CapitaLand understands that based on the information provided by eSun, East Asia believes it has reasonable prospects of obtaining the reliefs that it is seeking in the legal proceedings and that East Asia is continuing to pursue its claim.

4. On 29 October 2010, New Cotai has petitioned the Hong Kong High Court for an order that East Asia transfers its shareholding in CyberOne to New Cotai at a valuation to be determined by the courts. CapitaLand understands that East Asia is in the process of taking legal advice in relation to this petition. CapitaLand further understands that East Asia believes that it has complied with all material obligations relevant to the joint venture and that it will vigorously defend the claims brought by New Cotai.

5. In respect of the writ issued by New Cotai Entertainment LLC concerning the proposed casino lease as part of the MSC project on 14 October 2010, CapitaLand has not been served the writ of summons and declines to comment on the claims alleged against CapitaLand in the writ. However, CapitaLand continues to believe that the allegations are entirely without merit and will defend the claims vigorously if and when these proceedings are properly served on CapitaLand.

6. CapitaLand will make the appropriate announcements as and when there are material developments in the MSC project.

Attachments

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