11:10     MAXX BIOSCIENCE<00512>-Announcement&Resumption of Trading-12        

    Pursuant to the terms of the Early Redemption Agreement, if the           
    Company repays Convertible Notes and the Promissory Notes on or           
    before 31 March 2005, the Company will be able to redeem the              
    Convertible Notes and the Promissory Notes in full at a 10% discount      
    to the principal sum of both the Convertible Notes and the Promissory     
    Notes. Payton Place will also waive all accrued interest and future       
    interest payable by the Company under the Convertible Notes and the       
    Promissory Notes. The Company estimates that there will be a saving       
    of approximately HK$9.34 million (of which HK$7.8 million being the       
    10% of the aggregate principal sum waived by Payton Place and the         
    accrued interest of approximately HK$1.54 million up to the end of        
    March 2005 to be waived by Payton Place) as a result of the Early         
    Redemption.                                                               
                                                                              
    Having considered (1) the saving of 10% in principal amount of            
    Convertible Notes and Promissory Notes together with the saving of        
    interests which in aggregate amounts to approximately HK$9.34 million     
    and (2) upon redemption of the Convertible Notes and the Promissory       
    Notes in full, the gearing level of the Group will be reduced and the     
    Group's future cash flow position and balance sheet will be enhanced      
    by reducing its indebtedness, the Directors consider that it is an        
    appropriate moment for the Company to enter into the Early Redemption     
    Agreement which is in the interests of the Company and the                
    Shareholders as a whole.                                                  
                                                                              
    INFORMATION ON THE GROUP                                                  
    The Company and its subsidiaries are principally engaged in i)            
    investment holding; ii) manufacturing, trading and distribution of        
    health products, health drinks and pharmaceutical products; and iii)      
    development of drug products.                                             
                                                                              
    GENERAL                                                                   
    Vision Ocean, which is wholly owned by Ms. Lo, is the Controlling         
    Shareholder of the Company holding 130,004,818 Shares as at the           
    Announcement Date, representing approximately 36.32% of the existing      
    issued share capital of the Company. Ms. Lo is also the Chairman of       
    the Company and a Director.                                               
                                                                              
    Ms. Lo , Vision Ocean and their Associates will abstain from voting       
    at the SGM for approving the Open Offer as required under the Listing     
    Rules.                                                                    
                                                                              
    An independent board committee will be established to consider the        
    Open Offer to give a recommendation to the Independent Shareholders.      
    South China Capital Limited has been appointed to advise the              
    independent board committee and Independent Shareholders of the           
    Company regarding the Open Offer.                                         
                                                                              
    A circular containing, among other things, details of the Early           
    Redemption and the Open Offer, the advice from South China Capital        
    Limited as the independent financial adviser to the independent board     
    committee and Independent Shareholders of the Company in respect of       
    the Open Offer, the recommendation of the independent board committee     
    of the Company in relation to the Open Offer and the notice of the        
    meetings will be despatched to the Shareholders as soon as                
    practicable.                                                              
                                                                              
    SUSPENSION AND RESUMPTION OF TRADING                                      
    At the request of the Company, trading in the Shares on the Stock         
    Exchange was suspended with effect from 9:47 a.m. on Monday, 20           
    December 2004 pending the issue of this announcement. Application has     
    been made to the Stock Exchange for resumption in trading in the          
    Shares on the Stock Exchange with effect from 9:30 a.m. on Friday, 7      
    January 2005.                                                             
                                                                              
    DEFINITIONS                                                               
    The following defined terms are used in this announcement:-               
    `Announcement Date'            6 January 2005, date of this               
                                   announcement                               
    `associates'                   has the meaning ascribed                   
                                   thereto in the Listing Rules               
    `Assured Allotment Letter(s)'  the assured allotment letters              
                                   to be used in connection with              
                                   the Open Offer                             
    `business day'                 a day on which banks in Hong               
                                   Kong are open for general                  
                                   business other than a                      
                                   Saturday or Sunday or a day                
                                   on which a black rainstorm                 
                                   warning or tropical cyclone                
                                   warning signal number 8 or                 
                                   above is hoisted in Hong Kong              
                                   at any time between 9:00 a.m.              
                                   and 12:00 noon and is not                  
                                   lowered at or before 12:00                 
                                   noon                                       
    `Board'                        the board of Directors                     
    `Bye-laws'                     the bye-laws of the Company                
                                   in force from time to time                 
    `Company'                      MAXX Bioscience Holdings                   
                                   Limited, an exempted company               
                                   incorporated in Bermuda with               
                                   limited liability, the Shares