09:38     CHITALY HOLD<01198> - Announcement & Resumption of Trading-2        

    HK$1.38 per share of the Company ("Share") as quoted on the Stock         
    Exchange at 12:30 p.m. on 23 May, 2003, prior to the suspension           
    of trading of the Shares pending the publication of this                  
    announcement. The Sale Shares represent approximately 2.15 per            
    cent. of the existing issued share capital of the Company.                
                                                                              
    Baring is an independent third party not connected with any of            
    the Directors, substantial shareholders or chief executive of             
    the Company or any of its subsidiaries or their respective                
    associates (as defined in the Rules ("Listing Rules") Governing           
    the Listing of Securities on The Stock Exchange of Hong Kong              
    Limited ("Stock Exchange").                                               
                                                                              
    Crisana and Silver Wave are currently the controlling                     
    shareholders of the Company while Ms. Lam Ning, Joanna is an              
    executive Director. Immediately prior to the Sale and Purchase,           
    they were interested in 81,250,000 Shares, 81,250,000 Shares              
    and 2,300,000 Shares, representing approximately 34.92 per cent.,         
    34.92 per cent. and 0.99 per cent. of the issued share capital            
    of the Company respectively. Immediately following the Sale and           
    Purchase, the interests of Crisana, Silver Wave and Ms. Lam Ning,         
    Joanna have been reduced to 78,950,000 Shares, 78,950,000 Shares          
    and 1,900,000 Shares, representing approximately 33.93 per cent.,         
    33.93 per cent. and 0.82 per cent. of the issued share capital            
    of the Company.                                                           
                                                                              
    Shareholding structure of the Company before and after the Sale           
    and Purchase is as follows:                                               
                                                                              
    Shareholding before                                                       
    Shareholding after                                                        
    Name of shareholders                                                      
    Sale and Purchase                                                         
    Sale and Purchase                                                         
                                                                              
    Crisana                                                                   
    34.92%                                                                    
    33.93%                                                                    
    Silver Wave                                                               
    34.92%                                                                    
    33.93%                                                                    
    Lam Ning, Joanna                                                          
    0.99%                                                                     
    0.82%                                                                     
    Public                                                                    
    29.17%                                                                    
    31.32%                                                                    
                                                                              
    Total                                                                     
    100%                                                                      
    100%                                                                      
                                                                              
    EXERCISE OF SHARE OPTIONS                                                 
                                                                              
    Prior to the Sale and Purchase, each of Mr. Tse Kam Pang and              
    Mr. Lam Toi, being the executive Director and sole shareholder            
    of Crisana and Silver Wave respectively, has exercised his share          
    options of 2,300,000 Shares under the Company's share option              
    scheme adopted on 26 April, 2002. Such share options were granted         
    in September 2002 and the price was fixed at the date of grant.           
    Allotment of Shares will be arranged on 26 May, 2003.                     
                                                                              
    Shareholding structure of the Company before and after the                
    allotment of Shares pursuant to the exercise of share options             
    is as follows:                                                            
                                                                              
                            Shareholding before   Shareholding after          
    Name of shareholders                                                      
                            allotment of Shares   allotment of Shares