*********************************************************

It has been decided that the Insider Dealing Inquiry in relation to the listed securities of Paragon Holdings Limited (now renamed as CNPC (Hong Kong) Limited) will not proceed further. This decision will effectively conclude the insider dealing inquiry which began in September, 1994.

The decision has been made after careful assessment of all the relevant circumstances and in particular, with due regard to a person's right to a fair trial.

On September 15, 1994, a division of the Insider Dealing Tribunal was established to institute an inquiry into the possible insider dealing in relation to the shares of the Paragon Holdings Limited. The findings of the inquiry which sat between February 8, 1996, and November 25, 1996, were quashed by the Court of First Instance in the judicial review proceedings (HCAL Nos. 49/97 & 66/97) on grounds of procedural irregularities and unfairness.

Having regard to the quashing of the findings of the inquiry by the Court of First Instance and the upholding of the judgment by the Court of Appeal (CACV No. 162/98), and the judgment of the Court of Final Appeal in respect of a challenge against the Tribunal's ruling relating to costs which was handed down on November 26, 2003 (FACV No.5/03), and having considered the public interests involved, it has been decided that the inquiry should not proceed further.

Ends/Thursday, December 16, 2004

NNNN