09:02     SURGE<00703> - Exceptional Price Movement                           

    The Stock Exchange has received a message from Surge Recreation Holdings  
    Limited which is reproduced as follows:-                                  
                                                                              
    "This statement is made at the request of The Stock Exchange of Hong Kong 
    Limited.                                                                  
                                                                              
    We have noted the recent price fluctuation of the shares of the           
    Company and wish to state that we are not aware of any reasons for such   
    fluctuations.                                                             
                                                                              
    We also confirm that there are no negotiations or agreements relating to  
    intended acquisitions or realisations which are discloseable under        
    paragraph 3 of the Listing Agreement, neither is the Board aware of any   
    matter discloseable under the general obligation imposed by paragraph 2 of
    the Listing Agreement, which is or may be of a price-sensitive nature.    
                                                                              
    Made by the order of the Board of Surge Recreation Holdings Limited, the  
    directors of which individually and jointly accept responsibility for the 
    accuracy of this statement.                                               
                                                                              
                                                                              
    LI TAT TING                                                               
                                                                              
    Hong Kong, 23rd January, 2003"