H & L – Reorganization of Subsidiaries

The Board of the Company agreed to implement an internal organization of its group of companies through (inter alia) a scheme of reconstruction whereby assets, liabilities and the entire businesses and undertakings of the subsidiaries are transferred to and assumed by H & L. This will consolidate and strengthen the capital bases supporting the operating businesses of the subsidiaries so as to achieve economies of scale and other synergies, and enhance profitability and service delivery. The timing of this activity is scheduled for completion by the end of July 2005.