CHINA NEW TOWN DEVELOPMENT COMPANY LIMITED                                                                     (Incorporated in the British Virgin Islands with limited liability)                                                    (Company Registration No. 103373)

PROPOSED BUYBACK OF CONVERTIBLE BONDS                                                                                               Unless otherwise defined, all capitalised terms herein shall unless otherwise defined, bear the same meaning as the prospectus dated 5 November 2007 issued by China New Town Development Company Limited pursuant to its initial public offering.

The board of directors of China New Town Development Company Limited (“

By order of the Board                                                                                                                     Lim Chee Ying                                                                                                                        Company Secretary                                                                                                                          16 June 2008Company”) is pleased to announce that the holders (the “Bondholders”) of the Company’s RMB1,239,600,000 US$ Settled 5.0% Convertible Bonds due 2010 (the “Convertible Bonds”) have agreed to enter into discussions with the Company in relation to a proposed transaction involving the purchase of all of the outstanding Convertible Bonds from the Bondholders by the Company (the "Proposed Buyback"). In order to facilitate discussions, each of the Bondholders has in principle agreed that, until the earlier of (i) July 31, 2008, or (ii) the termination of good faith discussions relating to the Proposed Buyback by any Bondholder, it will not offer, sell, contract to sell, pledge or otherwise dispose of (or enter into any transaction (including swap transactions) which is designed to, or might reasonably be expected to, result in the disposition (whether by actual disposition or effective economic disposition due to cash settlement or otherwise) of) any of the Convertible Bonds or any securities convertible into or exchangeable or exercisable for or warrants or other rights to purchase the Convertible Bonds without the prior written consent of the Company. The Company expects to conclude discussions with the Bondholders shortly and will make an appropriate announcement in due course. There can be no assurance, however, that the Company will be able to agree with the Bondholders on the terms of the Proposed Buyback or that the Proposed Buyback will be completed as anticipated or at all. The initial public offering of the Company's shares was jointly sponsored by Citigroup Global Markets Singapore Pte. Ltd. and Deutsche Bank AG, Singapore Branch.