09:27     YUGANG INT'L<00613> - Announcement                                  

    The Stock Exchange of Hong Kong Limited (the `Stock Exchange') 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.                                                        
                                                                              
    YUGANG INTERNATIONAL LIMITED                                              
    (the `Company')                                                           
    (Incorporated in Bermuda with limited liability)                          
    (Stock Code: 613)                                                         
                                                                              
    PRICE AND VOLUME MOVEMENT                                                 
                                                                              
    The Board noted that there was increase in the price and                  
    trading volume of shares of the Company today. The Board wishes to        
    inform the shareholders of the Company and potential investors that       
    the Company is not aware of any reason for such increase.                 
                                                                              
    The Board also wishes to inform the shareholders of the Company that      
    the Company is currently considering certain investment opportunities     
    which may constitute a discloseable transaction when materialized.        
    The negotiation is still at an early stage and there is no assurance      
    that the negotiation may materialize into an agreement. No agreement      
    has yet been signed.                                                      
                                                                              
    Shareholders of the Company and investors should exercise caution         
    when dealing in shares of the Company.                                    
                                                                              
                                                                              
    The board of directors (the `Board') of the Company has noted the         
    recent increase in the price and the trading volume of the shares of      
    the Company and wishes to state that the Company is not aware of any      
    reason for such increase.                                                 
                                                                              
    The Company also confirms that, save and except that the Company is       
    currently considering certain investment opportunities which may          
    constitute a discloseable transaction when materialized, there are no     
    negotiations or agreements relating to intended acquisitions or           
    realizations which are discloseable under Rule 13.23 of the Rules         
    Governing the Listing of Securities on the Stock Exchange (the            
    `Listing Rules'), neither is the Board aware of any matter                
    discloseable under the general obligation imposed by Rule 13.09 of        
    the Listing Rules, which is or may be of a price-sensitive nature.        
    The negotiation is still at an early stage and there is no assurance      
    that the negotiation may materialize into an agreement. No agreement      
    has yet been signed. When concluded, the Company will make further        
    announcement on such materialized transaction if necessary.               
                                                                              
    Shareholders of the Company and investors should exercise caution         
    when dealing in shares of the Company.                                    
                                                                              
    As at the date of this announcement, the executive directors of the       
    Company are Mr. Cheung Chung Kiu, Mr. Yuen Wing Shing, Mr. Zhang Qing     
    Xin, Mr. Lam Hiu Lo and Mr. Liang Kang, the non-executive director is     
    Mr. Carmelo Lee Ka Sze and the independent non-executive directors        
    are Mr. Wong Wai Kwong, David, Mr. Wong Yat Fai and Mr. Ng Kwok Fu.       
                                                                              
                                                                              
    For and on behalf of                                                      
    Yugang International Limited                                              
    Yuen Wing Shing                                                           
    Executive Director                                                        
                                                                              
    Dated the 3rd day of January, 2005, Hong Kong