09:23 SKYWORTHDIGITAL<00751> - Announcement (1) The Stock Exchange of Hong Kong Limited takes no responsibility for the contents of this announcement, makes no representation as to its accuracy or completeness and expressly disclaims any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. SKYWORTH DIGITAL HOLDINGS LIMITED (Incorporated in Bermuda with limited liability) (Stock Code: 751) ANNOUNCEMENT Clarification on newspaper article The Company notes that it was recently mentioned in a newspaper article that the Company has submitted a resumption proposal to the Stock Exchange and it is currently waiting for the response from the Stock Exchange. In this regard, the Board wishes to clarify that the Company has not, as at the date of this announcement, made any proposal for the resumption of trading of its shares to the Stock Exchange. Nevertheless, the Company has already taken appropriate actions to safeguard and control the assets of the Group. Investors relation exercises As part of the investors relation exercises, the Company contacted various financial institutions and made the Presentation to the securities analysts and fund managers on 28 December 2004. The purpose of the Presentation is to report the recent changes in members of the Board, introduce the New Management and update the status of the Company since the Incident. The materials presented by the Company were essentially based on the contents of the Announcement and/or historical financial information which were published by the Company previously and no new price-sensitive information was released during the Presentation which was not included in the Announcement. Trading in the shares of the Company has been suspended with effect from 9:44 a.m. on 30 November 2004 and will remain suspended until further notice. Reference is made to the announcement (the "Announcement") dated 22 December 2004 of Skyworth Digital Holdings Limited (the "Company") in relation to, among others, changes in board composition and senior management, formation of independent committee, change of company secretary and update on the status of the Company. Capitalised terms used in this announcement have the same meanings as those defined in the Announcement unless otherwise stated. Clarification on newspaper article The Company notes that it was recently mentioned in a newspaper article that the Company has submitted a resumption proposal to the Stock Exchange and it is currently waiting for the response from the Stock Exchange. In this regard, the Board wishes to clarify that the Company has not, as at the date of this announcement, made any proposal for the resumption of trading of its shares to the Stock Exchange. Nevertheless, to safeguard and control the assets of the Group, the Company has already taken appropriate actions which include, among others, the engagement of Deloitte Touche Tohmatsu, the auditors of the Company, to perform an audit on the interim results of the Company for the six months ended 30 September 2004, the formation of the Independent Committee and the appointment of Grant Thornton, a firm of certified public accountants, as a financial monitor to provide assistance to the Independent Committee. Details of the duties and power of the Independent Committee and the scope of work of Grant Thornton have been set out in the Announcement. Investors relation exercises As part of the investors relation exercises, the Company contacted various financial institutions and made a presentation (the "Presentation") to securities analysts and fund managers on 28 December 2004. The purpose of the Presentation is to report the recent changes in members of the Board, introduce the New Management and update the status of the Company since the Incident. The materials presented by the Company were essentially based on the contents of the Announcement and/or historical financial information which were published by the Company previously (the "Published Materials") and no new price-sensitive information was released during the Presentation which had not been included in the Announcement. The Company may make further presentations to securities analysts and fund managers in the near future for the aforesaid purpose, but such presentations will only base on the Published Materials, or materials or information which has been cleared by the Stock Exchange to be released.