09:07 STOCKMARTNET<08123> - Announcement (2) The Board has appointed Mr. Lee Sing Kai, Albert ("Mr. Lee"), as an executive director of the Company and an Authorized Representative with effect from 3rd January, 2005. Mr. Lee, aged 47, is the Financial Controller of the Group and joined the Group in April 2001. Prior to joining the Group, Mr. Lee had served a Hong Kong listed company as its financial controller. He has over 15 years' extensive working experience in the finance and accounting fields. He has not been a director of any listed company in the last three years. Mr. Lee has no interests in the shares of the Company within the meaning of Part XV of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) and he does not have any relationship with any directors, senior management, management shareholders or substantial shareholders of the Company. Mr. Lee does not hold any other positions in the Company or any of its subsidiaries, other than the aforementioned. Mr. Lee has not entered into a service contract with the Company. His appointment has no specified term and he is subject to retirement by rotation and re-election at annual general meetings pursuant to the Company's articles of association. Mr. Lee is entitled to remuneration of HK$540,000 per annum for acting as an executive director of the Company. The basis for determining such remuneration was the prevailing market rate for similar positions in the context of the duties to be performed by Mr. Lee in his position and the time to be spent in discharging said duties. There are no other matters in relation to Mr. Lee's appointment that need to be brought to the attention of the shareholders of the Company. As disclosed in the Company's August 2004 Announcement, the resignation of Mr. Chick Siu Yee, Eddy ("Mr. Chick") as the Company's chief executive officer ("CEO"), an executive director; compliance officer ("Compliance Officer") and person authorised to accept service of process and notice on behalf of the Company ("Authorised Person") as well as a director of each of the Company's subsidiaries will take effect from 21st January, 2005. Further to the August 2004 Announcement, the Board has not yet decided whether or not to appoint a CEO to succeed Mr. Chick. A further announcement will be made when such decision is taken. To ensure a smooth transition the Board has implemented arrangements to facilitate continuity in the functions currently performed by Mr. Chick as CEO in that Mr. So, the Company's CFO, will take on Mr. Chick's day-to-day management functions and has been appointed as Compliance Officer and an Authorised Person with effect from 21st January, 2005. The Board, led by the Chairman, will continue to provide strategic direction for the Company. By Order of the Board of Stockmartnet Holdings Ltd. Seto John Gin Chung Chairman Hong Kong 3rd January, 2005 As at the date of this announcement, Mr. Chick Siu Yee, Eddy and Mr. So Kin Wing are executive directors, Mr. Seto John Gin Chung, Mr. Lee Yiu Sun, Mr. Yue Wai Keung, Mr. Chan Henry, Mr. Chan Kai Yu, Martin, Mr. Chan Hung Ti, Mr. Cheng Chi Lam, Mr. Espina, Anthony, Mr. Lee Jor Hung, Mr. Lee Sheung Yam and Mr. Wong Wai Sum are non-executive directors, Mr. Chung Shui Ming, Timpson, Mr. Tsui Yiu Wa, Alec and Mr. Fung Cheong Yee, Alfred are independent non-executive directors of the Company. This announcement will remain on the GEM website on the Latest Company Announcements page for at least 7 days from the day of its posting and on the Company's website at www.stockmartnet.com.