RNS Number:1793L
Cathay International Holdings Ld
16 May 2003


Cathay International Holdings Limited

Trading Update

Cathay International Holdings Limited (the "Company") announces that while the
trading results of the first two and a half months of 2003 are broadly in line
with the Company's expectations, the unexpected outbreak of the SARS virus has
significantly affected the operations of the Landmark Hotel in Shenzhen, the
People's Republic of China.  Since the second half of the month of March, the
Landmark Hotel has seen unprecedented low levels of occupancy.   From an average
occupancy rate of 62% in the first three months, the occupancy rate dropped to
an average of 19% in April.  Other leading hotels in Shenzhen have experienced a
similar reduction.  Turnover at food and beverage outlets at the Hotel has also
been adversely affected.

It is still too early to assess the full impact of SARS on the Company's results
for 2003, but it is expected that operational results for the period affected by
the outbreak will be significantly below expectations.  The Company has taken a
number of immediate measures to reduce costs, such as ending all programs
involving trainees and temporary staff, instructing staff to take all accrued
annual leave, introducing a program of unpaid leave for staff and blocking off
hotel guest floors to conserve energy, while preserving service standards and
business continuity. Although the outbreak of the SARS virus appears to have
passed its peak in Hong Kong, the extent to which the virus will continue to
affect the Landmark Hotel's operations in Shenzhen is still unclear.


Inquiries to:

Cathay International Holdings Limited
25 F Standard Chartered Bank Building
4-4A Des Voeux Road
Central District
Hong Kong



Attention: Stephen Hunt, Director
Tel: + 852 2828 9289


                      This information is provided by RNS
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