Shandong Huaneng Power Development Co. Ltd. Approves Dividend Payment At Annual General Meeting.

HONG KONG--(BUSINESS WIRE)--June 11, 1999--

New York-listed Shandong Huaneng Power Development Co. Ltd (NYSE: SH) today approved the payment of a year-end dividend of RMB0.05 per ordinary share as proposed by the Board of Directors.

At the Company's Annual General Meeting held in Jinan today, the shareholders approved the following resolutions proposed by the Board of Directors:

-- Payment of a year-end dividend of RMB0.05 per ordinary share

(US$0.302 per ADS based on the March 5, 1999 exchange rate

of US$1.00 = RMB8.2784). The payment date is set for June 18

and the dividend will be payable to holders of A shares, N

shares and ADS, whose names appeared on the Company's

register on April 16.

-- Approval of the 1998 Report of the Board of Directors.

-- Approval of the 1998 Report of the Supervisory Committee.

-- Approval of the 1998 Audited Statement of Accounts.,

Re-appointment of Arthur Andersen Hua Qiang and Authur

Andersen & Co as the Company's domestic and international

auditors respectively.

-- Appointment of Fu Yi-jun as a Director of the Company.

-- Appointment of Zhu Chang-fu as a Director of the Company.

Mr Yu Xinyang, chairman of Shandong Huaneng, said, "The company's capacity expanded last year with Weihai Phase II unit 3 beginning commercial operation in March and unit 4 starting commercial operation in November.

"Our expansion projects also progressed smoothly. We signed contracts with General Electric, Deutsche Babcock and Siemens to buy two 660 megawatt turbine-generators and auxiliary power equipment. Through China Construction Bank, we secured foreign loan facilities at relatively low interest rates to finance the purchase, maintaining a low debt-to-equity ratio as a firm," said Mr Yu.

He added that preparation for the construction of Dezhou Phase III was underway with actual construction expected to begin in the second half of 1999. The first generator is expected to be completed in 2002 and the second in 2003.

"Further capacity expansion will come from the 25.5% interest of the Rizhao plant which comprises two 350MW generators and are expected to be operational in the fourth quarter of 1999 and 2000. Such capacity expansion should ensure protection from lower utilization hours going forward," said Mr Yu.

Shandong Huaneng currently holds interest in three operating power plants, including the Dezhou Plant (100%), the Jining Plant (75%) and the Weihai Plant (60%). The three plants have a total installed capacity of 2,350 MW, of which the Company's proportionate ownership is 1,935 MW.