Since its inception in 1987, Shangri-La Hotel, Beijing has gained a
reputation for providing world-class facilities complemented by warm Asian
hospitality and has been well recognized by winning numerous international
awards. As part of its commitment to keep its reputation for providing
excellent services as well as to stay ahead of changing market trends and
needs of its guests, Shangri-La Hotel, Beijing announces a major upgrade
and re-imaging program.

The upgrade program, costing a total of US$ 72 million, will span two
phases. Phase One of the program, at US$22 million, is scheduled to
commence in August this year and will include total refurbishment of all
657 guest rooms to a completely new look with modern facilities and
luxurious amenities. All public areas, including the Reception Lobby, and
guest lifts will also undergo complete renovation. The popular Lobby
Lounge/Peacock Bar will become an exciting fully integrated design, which
will showcase the wonderful garden views. The Hotel's restaurants will
also undergo a major facelift, and in particular, the Coffee Garden, to be
renamed Cafe Cha, will adopt a new open kitchen design concept, integrating
a number of exciting cooking stations (Italian, Asian with noodles, Indian
Tandoor oven Seafood/Sushi and others) into a full performance buffet,
with the stunning Hotel Garden as backdrop. The signature Shang Palace
Chinese Restaurant will be completely redesigned and relocated to the
second floor of the Hotel with full view of the Hotel's beautiful Chinese
landscaped garden, which, complete with "Koi" fish pond, pavilions and
waterfall, will also be further enhanced and beautified in its new design.

Phase Two of the Hotel upgrade program is the construction of a new
20-storey Tower, estimated at over US$50 million, and scheduled to commence
at the end of 2003 for completion in mid 2006. The exciting new Tower,
connected to the main building of the Hotel, will feature the Hotel's new
Horizon Club. It will incorporate an additional 200 units of luxurious
guest rooms, at a minimum size of 45 square meters and a range of deluxe
specialty suites, including the Presidential Suites. Other new facilities
will include a 1,600 square meter Grand Ballroom that seats up to 1,200
person for banquets; 18 elegant multi-use function rooms with the latest in
audio-visual technology; a Fitness Center with the most up-to-date gym
equipment and a new 25 meter indoor swimming pool; a luxurious Health Spa
where one can go to relax and rejuvenate; a new Shanghainese restaurant,
a new Italian restaurant, an exciting Entertainment Club, as well as
exclusive luxury brand shopping facilities.

Commenting on the announcement of the re-imaging program, the Hotel's
General Manager, George Wee, said: " We are very excited about the upgrade
program. With the luxurious and innovative designs, and the up-to-date
facilities and amenities, it will completely transform our product into
one of the best that Beijing can offer, which, combined with our reputable
service, will add superb value for our guests. One of our main aims is
also to provide cutting edge IT facilities, including wireless internet
access, to our corporate clientele, predominantly from the neighboring
Zhongguancun (Beijing's Silicon Valley) and the Financial District. There
is without a doubt that Shangri-La Hotel, Beijing will, after the upgrade
program, be one of the most prestigious, deluxe Hotels in the city.