Hong Kong, November 18, 2008 - It has been brought to the attention of Kerry Properties Limited (HKEx: 683, the “Company”) that there have been recent market rumours alleging the Company has suffered financial losses as a result of engagement in speculative derivatives or structured product transactions.

The Company categorically states that the above-mentioned market rumours are both untrue and unfounded. The Company also confirms that it is not involved in any kind of speculative derivatives or structured product transactions.

The Company’s use of interest rate and currency swaps (as described on page 39 of the 2007 Annual Report) is intended solely to hedge the Company’s borrowings during its normal course of business. These contracts have immaterial impact to the financial position of the Company.