METRO HOLDINGS LIMITED

DIVESTMENT IN THE ORDINARY COURSE OF BUSINESS OF METRO

HOLDINGS LTD’S JOINTLY CONTROLLED ENTITIES OWNING

METROPOLIS TOWER

1. INTRODUCTION

Metro Holdings Limited (“Metro” or the “Company”) wishes to announce

that Nordevo Investments Ltd (“Nordevo”), its 50% held jointly controlled

entity, has entered into a sale and purchase agreement (“SPA”) to sell its

50.1% interest in the issued capital of Metropolis Holding China Ltd

(“MHC”) (the “Divestment”). MHC’s wholly owned subsidiary, Metropolis

Holding (Tianjin) Co Ltd (“MHTC”), owns the office property, Metropolis

Tower, in Beijing, PRC. Nordevo is a 50% jointly controlled entity of Crown

Investments Ltd (“Crown”). Crown is a wholly owned subsidiary of the

Company.

2. INFORMATION RELATING TO THE DIVESTMENT

2.1 Salient Terms of the SPA

The SPA provides for the sale of all of the issued share capital of

HK$5,000 of MHC for approximately US$2.3 million and payment of

shareholders loans of approximately US$15.3 million. The SPA also

provides for the repayment of all outstanding mezzanine loans of

approximately US$41.0 million.

2.2 Information on Metropolis Tower

Metropolis Tower comprises of a 19-storey office tower and four levels of

basement and is located in the Zhongguancun District, Beijing, PRC. It

has 24,701 square meters of lettable area. As at 30 June 2010, the office

complex was 79.5% occupied.

3. RATIONALE FOR THE DIVESTMENT

MHTC completed Metropolis Tower in mid 2009 and the office complex

has achieved a take up rate of 79.5% as at 30 June 2010 as substantial

new office supply in the main business districts of Beijing created

competitive conditions. It is therefore considered an appropriate time to

divest MHC.

The Divestment of the jointly controlled entities, MHC and MHTC, is in the

Metro Group’s ordinary course of business in property investment and

development and net proceeds of the Divestment will be added to the

working capital of the Group and used to build on the Metro Group’s

presence and investment in the region through a selective positioning,

new investments in property development and strategic alliances with a

view to broadening the revenue stream of the Metro Group and facilitating

sustained profitability for the Metro Group moving forward.

4. CONSIDERATION

The Metro Group’s share of the consideration for the issued share capital

of MHC of approximately US$0.6 million (approximately S$0.8 million) was

arrived at by negotiations on a willing seller, willing buyer basis and is to

be wholly satisfied in cash.

5. NTA / FINANCIAL EFFECTS

As at 30 June 2010, MHC was accounted for in the consolidated accounts

of the Metro Group at a negative NTA of approximately S$2.7 million.

The Divestment, is not expected to have any significant impact on the

consolidated net tangible asset per share and the consolidated earnings

per share of the Metro Group for the year ending 31 March 2011.

6. INTERESTS OF DIRECTORS AND SUBSTANTIAL SHAREHOLDERS

None of the Directors or substantial shareholders of the Company has any

interest, direct or indirect, in the Divestment otherwise than through their

shareholding interests in the Company.

7. COMPLIANCE WITH RULE 704 (16)(C) OF THE SGX-ST LISTING

MANUAL

This announcement is made pursuant to and for the purposes of

compliance with Rule 704 (16) (c) of the Listing Manual.

By Order Of The Board

Tan Ching Chek and Lee Chin Yin

Joint Company Secretaries

24 September 2010