FE HOTELS<0037> - Further Results Announcement

Further to the final results announcement of Far East Hotels & 
Entertainment Limited (the "Company") released on Teletext today 
(16/8/2000), the Company subsequently notified the Exchange the additional 
remark as follows:-

"Remark (3) 

In prior years, pre-operating expenditure was capitalised and amortised on 
a straight line basis, over a period of five years from the date of 
commencement of commercial operations of the subsidiaries.  The adoption 
of SSAP 1 has led to a re-assessment of this accounting policy.  In 
particular, pre-operating expenditure is not considered to give rise to an 
identifiable resource from which economic benefits are expected to flow to 
the Group.  Accordingly, such expenditure is now recognised as an expense 
in the period in which it is incurred.  This change in accounting policy 
has been adopted retrospectively - resulting in a deduction of retained 
profits at 1st April, 1998 of HK$3,210,326 and a decrease in Group's loss 
in the prior year of HK$743,528 after the share of HK$410,044 by minority 
interest.  Comparative amounts have been restated to reflect this change 
in accounting policy.

Under SSAP 24, investments in securities are now classified as 
held-to-maturity (carried at amortised cost less provision for 
irrecoverable amounts), investment securities (carried at cost less 
impairment) and other investments (carried at fair value, with valuation 
movements dealt with in the income statement).  In prior years, the 
Group's investments were classified either as long-term (carried at cost 
less provision for permanent diminution in value) or short-term (carried 
at the lower of cost and market value or at the lower of cost and net 
realisable value).  The accounting treatment specified by SSAP 24 has been 
applied retrospectively - resulting in reduction of retained profits at 
1st April, 1998 of HK$1,723,800, an increase in loss in the prior year of 
HK$236,600 and an increase in loss in the current year of HK$101,400.  
Comparative amounts have been restated to reflect this change in 
accounting policy."