NEO-CHINA GROUP<00563> - Unusual price & volume movements

The Stock Exchange has received a message from Neo-China Group
(Holdings) Limited which is reproduced as follows:-

"This statement is made at the request of The Stock Exchange of Hong Kong 
Limited.

We have noted that the increase in share price and trading volume of the 
Company today and wish to state that we are not aware of any reasons for 
such movement save as disclosed in the announcements of the Company dated 
28 June 2006 in relation to the Major and Connected Transaction - proposed 
acquisition of the Tianjin Project with Gross Floor Area of 1.087 million 
square meters.
 
We also confirm that there are no negotiations or agreements relating to 
intended acquisitions or realizations which are discloseable under rule 
13.23, neither is the Board aware of any matter discloseable under the 
general obligation imposed by rule 13.09, which is or may be of a price-
sensitive nature.

Made by the order of the Board of Directors of the Company which 
individually and jointly accept responsibility for the accuracy of this 
statement.

As at the date of this statement, the board comprises Mr. Li Song Xiao as 
chairman; Mr. Liu Yi, Ms. Niu Xiao Rong, Mr. Yuan Kun as executive 
directors; and Mr. Zhen Kuan, Mr. Wang Shiyong and Ms. Nie Mei Sheng as 
independent non-executive directors.

For and on behalf of
Neo-China Group (Holdings) Limited

Chan Yim Kum
Corporate Secretary

29 June 2006"