JUSCO STORES<0984> - Announcement

JUSCO STORES (HONG KONG) CO., LIMITED

Announcement


The Company announced that it has renewed its existing lease in respect of 
its store premises at Commercial 2 of Kornhill Plaza with Hang Fine 
Company Limited, a third party independent of and not connected with any 
of the directors, chief executives or substantial shareholders of the 
Company and any of its subsidiaries or associates (as defined in the 
Listing Rules).

The Board of Directors is pleased to announce that, on 1st November, 1999, 
the Company has renewed its existing lease with Hang Fine Company Limited, 
a third party independent of and not connected with any of the directors, 
chief executives or substantial shareholders of the Company and any of its 
subsidiaries or associates (as defined in the Listing Rules) in respect of 
its store premises at Commercial 2 of Kornhill Plaza ("Kornhill Store"), 
which comprises an area of approximately 261,000 s.f., for a term of 
twelve years and eleven days commencing on 20th November, 1999 and 
expiring on 30th November, 2011 (the "New Lease"). The rent payable under 
the New Lease comprises a basic rent which is a fixed sum payable monthly 
and, commencing from 1st December, 2001, an additional rent which is 
payable only if the annual gross turnover of the Kornhill Store exceeds a 
fixed amount. The maximum annual basic rent payable under the New Lease 
before a revised rent being effective from 1st December, 2005 is 
approximately 9% of the total operating expenses as shown in the Company's 
consolidated management accounts for the financial year ended 28th 
February, 1999.

The terms of the New Lease have been agreed between the parties on an 
arm's length basis and are fair and reasonable as far as the shareholders 
are concerned. An independent valuer appointed by the Company has issued a 
letter to the Company stating that, in its opinion, the new rent and the 
New Lease are fair and reasonable under current market conditions.

By Order of the Board
Sozaburo Yamazaki
Managing Director

Hong Kong, 1st November, 1999