HONG KONG, August 29 /PRNewswire/ --

- Gross Proceeds from Shares Subscription Increased to US$725 million

HKC (Holdings) Limited ("HKC (HOLDINGS)") or the ("Company") (HKEx stock
code: 190) announced today that its new strategic shareholder Cerberus Asia
Capital Management, LLC or its affiliates ("Cerberus"), has satisfactorily
concluded the due diligence exercise on HKC (HOLDINGS) to subscribe for the
Company's shares. This means one of the major conditions for Cerberus to
become the second largest shareholder of HKC (HOLDINGS) has been fulfilled.

In addition to the announcement dated 18 July 2007, the Company entered
into supplemental agreements with Cerberus and Penta Investment Advisers Ltd.
("Penta") which entail an increase in the number of subscription shares
subscribed by Cerberus and Penta to 1,426,829,000 and 570,731,000 shares
respectively at a subscription price of HK$2.05 per share. Given the total
subscription amount of Creator Holdings Limited ("Creator") remains at
approximately US$ 200 million (about HK$1.56 billion), the gross proceeds
from the share subscription will increase from approximately US$700 million
(about HK$5.46 billion) to approximately US$725 million (about HK$5.65
billion). The subscription price of Bonus Warrants and the subscription
period have also been amended to HK$2.05 per share and twenty-four months
after issuance.

Mr. Eric Oei, Managing Director and Chief Executive Officer of HKC
(HOLDINGS) said, "We are delighted that Cerberus was able to complete the due
diligence check so fast and smoothly. It is our great honor to have Cerberus
become a strategic investor, providing us with not only equity and debt
capital but also with abundant operational experiences and expertise."

After the share subscriptions, Creator will remain as the largest
controlling shareholder of the Company. To demonstrate Creator's support for
and confidence in HKC (HOLDINGS), its subscription price remains unchanged at
HK$2.273 per share, in spite of the enormous market fluctuations in the past
few weeks. As another contribution to the Company, Penta and Cerberus will
each nominate one non-executive director to the Company's Board and join the
investment committee of the Board and be involved in periodic review of our
major existing and proposed investments. Their long-term commitment to the
business of the Company and the expertise they bring with them will no doubt
benefit the Company's future development.

"We are very pleased that Cerberus and Penta are subscribing more shares
of the Group even during volatile market times, demonstrating their support
for the Group and confidence in the Group's development. China's robust
economy and property markets in major cities are going to give us strong
impetus to grow and become one of the leading players in the property sector
in the country. We have full confidence in the prospects of the Group and
will continue to make every endeavor to develop its business," Mr. Oei
concluded.

About HKC (Holdings) Limited (stock code: 190)

HKC (Holdings) Limited is principally engaged in property development and
investment activities with a primary focus in the PRC. It is also one of the
leading providers of alternative energy in the PRC.

For more information, please visit the Group's website:
http://www.hkcholdings.com .

About Cerberus

The Cerberus group is one of the leading private investment funds in the
world, operating in most major markets. It specializes in providing both
financial resources and operational expertise to help transform undervalued
companies into industry leaders for long-term success and value creation. The
Cerberus group holds controlling or significant minority interests in
companies around the world. In aggregate, these companies currently generate
over USD60 billion in annual revenues.

About Penta Investment Advisers

Penta Investment Advisers is an Asian-focused alternative investment
manager. Founded in 1998, Penta focuses on managing its Pan-Asian equity
investment funds and managed accounts. Penta has more than USD3 billion
assets under management.

For more information, please contact:

    Strategic Financial Relations Limited
     Esther Chan
     Tel:   +852-2864-4825
     Email: esther.chan@sprg.com.hk

     Vicky Lee
     Tel:   +852-2864-4834
     Email: vicky.lee@sprg.com.hk

     Daphne Chan
     Tel:   +852-2864-4817
     Email: daphne.chan@sprg.com.hk

     Doris Chan
     Tel:   +852-2114-4950
     Email: doris.chan@sprg.com.hk

Web site: http://www.hkcholdings.com