SHRIRO EQUIPMENT LTD.

In an effort to improve our performance and gain greater efficiencies in our operations, we will merge Peninsula Engineering & Equipment Co., Ltd. into Shriro Heavy Equipment Ltd. and rename the company to Shriro Equipment Ltd. In parallell with this, Shriro Machinery Ltd., our construction equipment rental business will also merge with this two companies.

This will be headed by Mr. Arix Lai, Managing Director, and Mr. Jeff Peh, Finance Director. Mr. Albert Yu will be Chairman of the Equipment Group.

This becomes effective in January 2003.

Shriro Equipment Ltd. will then comprise of Construction and Quarrying Division, Forklift Division, Turf Division, Rental Department (Tower Cranes, Forklift and Bobcat), Spare Parts and Service. This is very similar to the original Peninsula Engineering & Equipment Co. Ltd. except with the addition of Turf and Quarry equipment, and, of course, a new name and under a very experienced management team.

May I take this opportunity to wish you all Seasons Greetings and a Happy and more Prosperous 2003.

SHRIRO PACIFIC LTD.

Michael R.Binns

Hong Kong
23rd December, 2002