09:04     YONGLONG<08211> - Announcement                                      

                                                                              
    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.                                                             
                                                                              
    ZHEJIANG YONGLONG ENTERPRISES CO., LTD.*                                  
    (a joint stock limited company incorporated in the People's               
    Republic of China with limited liability)                                 
    (Stock Code : 8211)                                                       
                                                                              
    ANNOUNCEMENT                                                              
                                                                              
    TERMINATION OF JV AGREEMENT AND DISSOLUTION OF JV COMPANY                 
                                                                              
    Reference is made to the Announcements and the Circular in                
    respect of, among others, the establishment of the JV Company.            
    The Board wishes to announce that pursuant to a resolution                
    passed by the shareholders of the JV Company on 30 December,              
    2004, the JV Agreement would be terminated and the JV Company             
    would be dissolved.                                                       
                                                                              
            By Order of the Board                                             
            Sun Li Yong                                                       
            Chairman                                                          
                                                                              
    Zhejiang, the PRC, 4 January, 2005                                        
                                                                              
    This announcement, for which the directors of the Company                 
    collectively and individually accept full responsibility,                 
    includes particulars given in compliance with the Rules                   
    Governing the Listing of Securities on the Growth Enterprise              
    Market of the Stock Exchange of Hong Kong Limited for the                 
    purpose of giving information with regard to the Company.                 
    The directors of the Company, having made all reasonable                  
    enquiries, confirm that, to the best of their knowledge                   
    and belief: (1) the information contained in this announcement            
    is accurate and complete in all material respects and not                 
    misleading; (2) there are no other matters the omission of                
    which would make any statement in this announcement misleading;           
    and (3) all opinions expressed in this announcement have been             
    arrived at after due and careful consideration and are founded            
    on bases and assumptions that are fair and reasonable.                    
                                                                              
    This announcement will remain on the "Latest Company                      
    Announcement" page of the GEM website for at least 7 days from            
    the date of its publication.                                              
                                                                              
    The above announcement is a summary only.  For full version of this       
    announcement, please refer to the "Latest Company Announcement"           
    page of the GEM website at www.hkgem.com.                                 
                                                                              
    *For identification purpose only