10:05 SKYNET(INTL GP)<00577> - 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. SKYNET (INTERNATIONAL GROUP) Holdings Limited (incorporated in Bermuda with limited liability) (Stock code: 577) FREE EXCHANGE OF NEW SHARE CERTIFICATES Free exchange of new share certificates has been arranged for Shareholders from Wednesday 5th January, 2005 to the fifth business day after the parallel trading to be arranged for the Share Consolidation ends. Reference is made to (i) the joint announcements made by Skynet, Paul Y and ITC dated 4th June, 2004, 3rd September, 2004 and 30th November, 2004; (ii) the announcements made by Skynet dated 15th December, 2004 and 22nd December, 2004; and (iii) the circular of Skynet dated 30th November, 2004 ("Skynet Circular") in relation to, among other things, the Restructuring Proposal and the application for Whitewash Waiver. Capitalised terms used herein have the same meanings ascribed thereto in the Skynet Circular. FREE EXCHANGE OF NEW SHARE CERTIFICATES Shareholders may, beginning from Wednesday 5th January, 2005, send their existing light grey share certificates for the old shares of Skynet of HK$0.02 ("Old Shares") (before Capital Reorganisation taking effect) to the Registrar, Standard Registrars Limited at Ground Floor, Bank of East Asia Harbour View Centre, 56 Gloucester Road, Wanchai, Hong Kong, in exchange, at the expense of Skynet, for either (i) new light green share certificates for Consolidated Shares under the existing name of Skynet if the Shareholders send in the existing share certificates before the Change of Name becomes effective which is expected to be on 18th January, 2005; or (ii) new orange share certificates for Consolidated Shares under the new name of Skynet if the Shareholders send in the existing share certificates after the Change of Name becomes effective. The last day of free exchange service is expected to be the fifth business day after the parallel trading to be arranged for the Share Consolidation ends. Since the arrangement of and timing for the parallel trading depend on the resumption of trading in the Consolidated Shares, further announcement will be made in this regard. In addition, the timetable for (i) details of the matching service for trading of odd lots of Consolidated Shares of the Share Consolidation; (ii) the change of board lot size; and (iii) the change of the stock short name will be announced in due course. It is expected that new light green/orange share certificates for Consolidated Shares will be available for collection within ten business days after the submission of the existing light grey share certificates to the Registrar. After the aforesaid period, existing light grey share certificates for the Old Shares will be accepted for exchange only on payment of a fee of HK$2.50 (or such higher amount as may from time to time be allowed by the Stock Exchange) for each existing light grey share certificate for the Old Shares cancelled or each new light green/orange share certificate issued for the Consolidated Shares, whichever number of certificates cancelled/issued is higher. Nevertheless, existing light grey share certificates for the Old Shares will continue to be good evidence of legal title and may be exchanged for either new light green or orange share certificates (depending on whether the Change of Name will become effective or not) for the Consolidated Shares at any time. All existing light grey share certificates for Old Shares in issue or new light green share certificates for Consolidated Shares bearing the existing name of Skynet will, after the Change of Name, continue to be evidence of title to the shares of Skynet. Light green certificates for Consolidated Shares will continue to be valid for trading and settlement purposes and the rights of the Shareholders will not be affected as a result of the Change of Name. Should the Change of Name become effective, any issue of new orange share certificates thereafter will be in new company name and the securities of Skynet will be traded on the Stock Exchange under the new name. Further announcement will be made as soon as the Change of Name becomes effective.