New China Homes, Ltd. Reports Sale of Interest in Outparcels for U.S. $16.4 Million

Apr 02, 2001, 01:00 ET from New China Homes, Ltd.

    BOCA RATON, Fla., April 2 /PRNewswire/ -- New China Homes, Ltd.,
 (Nasdaq:   NEWC), a developer of large, planned residential communities in
 China's emerging private home building market, today reported that it has
 entered into an agreement for the sale of the economic interest in certain of
 its outparcels to a developer who will complete this phase of California
 Gardens, the Company's planned residential suburban community, located on a
 350-acre site in northwest Shanghai.
     The terms of the sale call for payment of approximately U.S. $16,400,000
 over a six-month period commencing with the signing of the agreement.
     Earnings for fiscal year 2001, which will end March 31, 2001, are now
 projected to be approximately U.S. $10,750,000, or approximately $0.85 per
 share, subject to customary year-end audit adjustments.
     "We are pleased with the progress we are making toward realizing the full
 value of our California Gardens project, beyond its initial residential
 potential," said Trevor Bedford, Chairman.
     At this time, the Company has decided not to exercise its option to
 proceed with its previously announced Millennium Towers project in Beijing due
 to other development opportunities viewed as potentially more financially
 advantageous, and its project deposit has been returned. These prospects are
 in Beijing, Shanghai and Guangzhou. Subject to the completion of financing
 arrangements, the Company expects to start at least one of these projects in
 approximately the next two months.
     New China Homes, Ltd., is the developer of California Gardens, a planned
 residential suburban community located on a 350-acre site in northwest
 Shanghai. California Gardens has received critical acclaim for its innovative
 design, and has been frequently cited as an excellent example of the
 significant accomplishments in residential development under China's housing
 reform program. Among its many awards, the project has been cited for Finest
 Housing Design, Most Distinctive Housing Project and Most Recommended Housing
 Project by various professional and government agencies.
     Over 2,300 homes have been sold or are under contract to be sold at the
 California Gardens development, with a total projection of approximately 6,000
 homes for the completed development. A wide range of amenities including 3
 schools, retail stores, tennis courts, indoor swimming and sports facilities,
 a clubhouse, local transportation facilities, and medical clinics have been
 built and are operating at California Gardens.
 
     Except for the factual statements made herein, the information contained
 in this press release consists of forward-looking statements that involve
 risks and uncertainties that are difficult to predict.  Such risks and
 uncertainties include but are not limited to, changes in local market
 condition, government regulations, lagging home sales growth, and ability to
 obtain mortgage financing.  Words and expressions reflecting optimism and
 satisfaction with current prospects as well as words such as "believe,"
 "expects," "plans," "anticipates," "projects," "estimates," and variations
 thereof, identify forward-looking statements, but their absence does not mean
 that a statement is not forward-looking.  Such forward-looking statements are
 not guarantees that the transaction will be completed in accordance with its
 terms.  Reference is also made to other factors set forth in the Company's
 filings with the Securities and Exchange Commission, including the "Risk
 Factors," and other sections of the Company's Form 20-F. These forward-looking
 statements speak only as of the date of this release, and the Company
 undertakes no obligation to publicly update any forward-looking statements to
 reflect new information, events or circumstances after the date of this
 release.
 
 

SOURCE New China Homes, Ltd.
    BOCA RATON, Fla., April 2 /PRNewswire/ -- New China Homes, Ltd.,
 (Nasdaq:   NEWC), a developer of large, planned residential communities in
 China's emerging private home building market, today reported that it has
 entered into an agreement for the sale of the economic interest in certain of
 its outparcels to a developer who will complete this phase of California
 Gardens, the Company's planned residential suburban community, located on a
 350-acre site in northwest Shanghai.
     The terms of the sale call for payment of approximately U.S. $16,400,000
 over a six-month period commencing with the signing of the agreement.
     Earnings for fiscal year 2001, which will end March 31, 2001, are now
 projected to be approximately U.S. $10,750,000, or approximately $0.85 per
 share, subject to customary year-end audit adjustments.
     "We are pleased with the progress we are making toward realizing the full
 value of our California Gardens project, beyond its initial residential
 potential," said Trevor Bedford, Chairman.
     At this time, the Company has decided not to exercise its option to
 proceed with its previously announced Millennium Towers project in Beijing due
 to other development opportunities viewed as potentially more financially
 advantageous, and its project deposit has been returned. These prospects are
 in Beijing, Shanghai and Guangzhou. Subject to the completion of financing
 arrangements, the Company expects to start at least one of these projects in
 approximately the next two months.
     New China Homes, Ltd., is the developer of California Gardens, a planned
 residential suburban community located on a 350-acre site in northwest
 Shanghai. California Gardens has received critical acclaim for its innovative
 design, and has been frequently cited as an excellent example of the
 significant accomplishments in residential development under China's housing
 reform program. Among its many awards, the project has been cited for Finest
 Housing Design, Most Distinctive Housing Project and Most Recommended Housing
 Project by various professional and government agencies.
     Over 2,300 homes have been sold or are under contract to be sold at the
 California Gardens development, with a total projection of approximately 6,000
 homes for the completed development. A wide range of amenities including 3
 schools, retail stores, tennis courts, indoor swimming and sports facilities,
 a clubhouse, local transportation facilities, and medical clinics have been
 built and are operating at California Gardens.
 
     Except for the factual statements made herein, the information contained
 in this press release consists of forward-looking statements that involve
 risks and uncertainties that are difficult to predict.  Such risks and
 uncertainties include but are not limited to, changes in local market
 condition, government regulations, lagging home sales growth, and ability to
 obtain mortgage financing.  Words and expressions reflecting optimism and
 satisfaction with current prospects as well as words such as "believe,"
 "expects," "plans," "anticipates," "projects," "estimates," and variations
 thereof, identify forward-looking statements, but their absence does not mean
 that a statement is not forward-looking.  Such forward-looking statements are
 not guarantees that the transaction will be completed in accordance with its
 terms.  Reference is also made to other factors set forth in the Company's
 filings with the Securities and Exchange Commission, including the "Risk
 Factors," and other sections of the Company's Form 20-F. These forward-looking
 statements speak only as of the date of this release, and the Company
 undertakes no obligation to publicly update any forward-looking statements to
 reflect new information, events or circumstances after the date of this
 release.
 
 SOURCE  New China Homes, Ltd.

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