Statement re litigation

Hidong Estate PLC
18 January 2006



                               Hidong Estate PLC

                               Litigation update

For immediate release
                                                                 18 January 2006

Further to the announcement on 16 January 2006 of the ex-parte mandatory
injunction obtained by the Palamsel Holdings Sdn Bhd, the Purchaser of Hidong
Estate PLC's Plantation, the Directors of Hidong Estate PLC ('the Company')
announce that after negotiations the parties agreed this morning that the
ex-parte injunction be set aside by the Court, which the Court has done. As a
result of negotiation with the Purchaser and on the advice of the Company's
solicitors, the Company and the Purchaser have consented to the following:-

1) The Company will now only deliver vacant possession of the properties to
   the Purchaser upon receipt of the full sale proceeds from the Purchaser.

2) The original document of title to the said properties will be forwarded
   to the Purchaser's solicitor with their undertaking that they will not effect
   transfer of the said properties until the Company's shareholders' approval 
   has been obtained as provided in the Sale and Purchaser Agreement.

Even though the above terms are not in total compliance of the terms of the Sale
and Purchase agreement, the Directors consider after much deliberation that it
is in the best interest of the Company that the current terms are accepted in
the face of the said ex-parte injunction.



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