HK FERRY (HOLD)<0050> & NEW WORLD DEV<0017>- Joint Announcement

The  Stock  Exchange of Hong Kong Limited takes no responsibility for
the  contents of this announcement, makes no representation as to its
accuracy  or  completeness  and  expressly disclaims any liability
whatsoever  for  any loss howsoever arising from or in reliance upon
the whole or any part of the contents of this announcement.

Hong  Kong  Ferry (Holdings) Company Limited
 (Incorporated in Hong Kong under the Companies Ordinance) 

New World Development Company Limited
(Incorporated in Hong Kong under the Companies Ordinance)

JOINT ANNOUNCEMENT

SUMMARY

HKF  and NWD announced jointly that on 2 November 1999,  HKF and HYF 
(a wholly-owned subsidiary of HKF) entered into an agreement  with NWFF 
(a 76% subsidiary of New World Services Limited) and  New  World Services 
Limited (a 51.2% subsidiary of NWD) for the sale  by HKF/HYF of a fleet of 
14 ferry vessels with a total capacity of  approximately  12,000 seats, a 
depot at Cheung Sha Wan, and other ancillary  assets  to NWFF at a total 
consideration of approximately HK$155  million, along with the transfer of 
ferry licences in respect of  8 ferry routes from HYF to NWFF. The 
transfer has been approved by the Commissioner for Transport on 2 November 
1999.

Description of the interest to be transferred:
Under  the  Agreement  for  the  Sale and Purchase of Assets (the
`Agreement')  and  at  a total consideration of approximately HK$155
million,  Hong  Kong Ferry (Holdings) Company Limited (`HKF') and The
Hongkong  and Yaumati Ferry Company Limited (`HYF') agreed to sell and
New  Word  First Ferry Services Limited (`NWFF') agreed to purchase a
fleet  of  14  ferry vessels with a total capacity of approximately
12,000  seats,  a depot at Cheung Sha Wan, and other ancillary assets
(the  `Assets')  of  HKF/HYF so as to equip NWFF with the ability to
operate  the  ferry  routes  under  licenses to be transferred in
accordance with the Ferry Services Ordinance (Cap. 104).

Ferry  licences  to operate 8 ferry routes as set out hereunder will
be  transferred  by  HYF  to  NWFF on 15 January 2000, subject to
satisfaction  of  certain  conditions  set  out in the Agreement,
including  the  obtaining of all necessary consents and approvals for
the  transfer  of  the  Assets.  Approval has been granted by the
Commissioner for Transport on the transfer of licences:-

(a)Cheung Chau - Central
(b)Cheung Chau - Kowloon Point
(c)Mui Wo - Central
(d)Mui Wo - Kowloon Point
(e)Peng Chau - Central
(f)Inter-Islands
(g)North Point - Hung Hom
(h)North Point - Kowloon City

Consideration and terms of payment:
The  total  consideration in the sum of approximately HK$155 million
under  the  Agreement  shall  be payable by NWFF to HKF/HYF in the
following manner:-

(a)NWFF  has  paid approximately HK$77.5 million, being 50% of the total
purchase  price  of the Assets to be sold, to HKF/HYF as deposits and
part  payment of the purchase price upon signing of the Agreement; and

(b)the  balance  of  approximately HK$77.5 million shall be payable by
NWFF on completion.

Completion date:
15  January  2000 (or such other date as may be agreed by the parties
in writing).

Staff arrangement:
NWFF  has  agreed to offer employment to about 400 frontline staff of
HKF  and HYF. The terms and conditions of employment for the frontline
staff  would  be  devised having due consideration to their current
terms  and  conditions  together with those prevailing in the ferry
industry  in  Hong Kong. The terms and conditions to be offered would
be  no less favourable than those prevailing in the industry. HKF and
HYF  have also agreed to second management staff to NWFF to assist in
the start-up of NWFF's operation.

Source of funding:
The  investment to be made by NWFF in connection with the acquisition
of  the  Assets  will  be funded by internal resources of New World
Development  Company  Limited (`NWD') and its subsidiaries (the `NWD
Group')  and/or  third  party  loans and there will be no material
adverse effect on the NWD Group's cash flow or gearing.

Reasons for the transactions:
The  Directors of HKF believe that the disposal of the Assets to NWFF
will  give  HKF  an opportunity to focus on investment opportunities
with  better  returns. After the cessation of the licensed passenger
ferry  services,  HKF  will  focus  on  property development and
investment,  such  as the redevelopment at 201 Tai Kok Tsui Road, as
well  as  its  Tsing  Yi shipyard operation, of which no change in
ownership is involved.

The  Directors  of  NWD believe that the transfer of the licences of
the  ferry routes and the Assets to NWFF is consistent with the policy
of  the NWD Group to look for new business and expansion opportunities
in  respect of reliable service industry investments with the ultimate
objectives  of  ensuring  profitability  and  sustaining long-term
growth.

By  Order  of  the Board
Hong Kong Ferry (Holdings) Co. Ltd.
Law Cho Wa, Richard
Company Secretary       

By Order of the Board
New World Development Co. Ltd.
Leung Chi Kin, Stewart
Company Secretary

Hong Kong, 2 November 1999.