10:31     KINGBOARD CHEM<00148>E&E INT'L<00033>-J.Ann&Suspend<00033>-2        

    acceptances under the Hong Kong Share Offer, the Hong                     
    Kong Offeror and parties acting in concert with it                        
    are interested in 1,166,629,764 E&E Shares,                               
    representing approximately 95.26% of the entire                           
    issued share capital of E&E as at the date of this                        
    announcement.                                                             
                                                                              
    PRIVATIZATION OF E&E                                                      
    As disclosed in the Privatization Announcement, the                       
    Company and the Hong Kong Offeror have decided to                         
    privatize E&E and to effect the compulsory                                
    acquisition under the Companies Act of E&E Shares held                    
    by E&E Shareholders who have not accepted the Hong                        
    Kong Share Offer pursuant to Rule 6.15 of the Listing                     
    Rules.                                                                    
                                                                              
    As the Hong Kong Offeror and parties acting in concert                    
    with it hold in aggregate more than 95% of the issued                     
    share capital of E&E, the Hong Kong Offeror has the                       
    right and will exercise such right to compulsorily                        
    acquire the E&E Shares held by shareholders who have                      
    not accepted the Hong Kong Share Offer, at the price                      
    of HK$1.90 per E&E Share, in accordance with and                          
    subject to section 103 of the Companies Act.                              
                                                                              
    SUSPENSION OF TRADING                                                     
    As disclosed in the Offer Announcement and the Offer                      
    Document, if the level of acceptances reach the                           
    prescribed level under the Companies Act and Rule 2.11                    
    of the Takeovers Code permits a compulsory                                
    acquisition and the Hong Kong Offeror proceeds with                       
    the privatization of E&E, dealings in the securities                      
    of E&E will be suspended from the Closing Date up to                      
    the withdrawal of listing of E&E's securities from                        
    the Stock Exchange pursuant to Rule 6.15 of the                           
    Listing Rules. In this connection, E&E has applied                        
    for suspension of trading of E&E Shares with effect                       
    from 9:30 a.m. on 7 January 2005. Upon the acquisition                    
    of all the E&E Shares by the Hong Kong Offeror and                        
    parties acting in concert with it, E&E will apply to                      
    the Stock Exchange for withdrawal of its listing on                       
    the Stock Exchange. This announcement serves as the                       
    notice of the proposed withdrawal of the listing to                       
    all E&E Shareholders pursuant to Rule 6.15 of the                         
    Listing Rules.                                                            
                                                                              
    Reference is made to the announcement dated 12 October                    
    2004 (the "Offer Announcement"), the offer document                       
    dated 1 November 2004 (the "Hong Kong Offer Document"),                   
    the announcement dated 25 November 2004 (the                              
    "Unconditional Announcement") and the announcement                        
    dated 9 December 2004 and the announcement dated 23                       
    December 2004 (the "Privatization Announcement")                          
    issued by, among others, the Company and the Hong Kong                    
    Offeror in respect of, among other things, the Hong                       
    Kong Offers. Unless otherwise defined, terms defined                      
    in the Hong Kong Offer Document shall have the same                       
    meanings when used in this announcement.                                  
                                                                              
    CLOSE OF THE HONG KONG OFFERS                                             
    The Hong Kong Offers closed at 4:00 p.m. on 6 January                     
    2005.                                                                     
                                                                              
    ACCEPTANCE LEVEL OF THE HONG KONG OFFERS                                  
    As stated in the Unconditional Announcement, the Hong                     
    Kong Offers had become unconditional in all respects                      
    on 25 November 2004.                                                      
                                                                              
    As at 4:00 p.m. on 6 January 2005, the Hong Kong Offeror                  
    had received valid acceptances in respect of                              
    828,185,764 E&E Shares under the Hong Kong Share Offer,                   
    representing approximately 67.63% of the entire                           
    issued share capital of E&E. One valid