Statement re litigation

Hidong Estate PLC
01 March 2005




                               HIDONG ESTATE PLC

                                    Litigation


For immediate release

1 March 2005


The board of Hidong Estate PLC ('HE ' or the 'Company') announces that it has
been served with a Writ filed by Palamsel Holdings Sdn Bhd ('Palamsel') in the
High Court of Malaya.

Palamsel was negotiating with the Company for the sale of its palm oil
plantation and has served a writ on the Company claiming specific performance -
ie the sale of the plantation on certain terms which have not been agreed by the
HE board. The Company's legal advisers have stated that this suit is
'unsustainable and without merit'.




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