09:07     KO YO GROUP<08042> - 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.               
                                                                              
    Ko Yo Ecological Agrotech (Group) Limited                                 
    (Incorporated in the Cayman Islands with limited liability)               
    (Stock code: 8042)                                                        
                                                                              
    DISCLOSEABLE TRANSACTION                                                  
                                                                              
    Acquisition of the Sale Assets of Dazhu Hongsen Chemical                  
                                                                              
    The Board announces that on 30 December 2004, Dazhu Ko Yo                 
    Chemical, an indirectly wholly-owned subsidiary of the Company,           
    entered into an Assets Acquisition Agreement with Dazhu Hongsen           
    Chemical to acquire the Sale Assets of Dazhu Hongsen Chemical at the      
    total consideration of RMB24,263,828 (HK$22,890,404) of which             
    RMB11,370,000 (HK$10,726,415) will be paid by cash while the              
    remaining RMB12,893,828 (HK$12,163,989) will be settled by repaying       
    the Liabilities. The Assets Acquisition is financed by internal           
    resources of the Group.                                                   
                                                                              
    The Directors confirm that to their best knowledge, information and       
    belief having made all reasonable enquiry, Dazhu Hongsen Chemical and     
    its ultimate beneficial owners are third parties independent of the       
    Company and its connected persons as defined in the GEM Listing           
    Rules.                                                                    
                                                                              
    The Directors consider the terms and conditions of the Assets             
    Acquisition Agreement are fair and reasonable and in the best             
    interests of the Company and its shareholders as a whole.                 
                                                                              
    The Assets Acquisition constitutes a discloseable transaction for         
    the Company under Chapter 19 of the GEM Listing Rules. A circular         
    containing further information regarding this acquisition will be         
    sent to the shareholders of the Company on or before 28 January           
    2005.                                                                     
                                                                              
    By Order of the Board of Directors of                                     
    Ko Yo Ecological Agrotech (Group) Limited                                 
    Li Weiruo                                                                 
    Chairman                                                                  
                                                                              
    Chengdu, the PRC, 7 January 2005                                          
                                                                              
    The above announcement is a summary only. For the full version of         
    this announcement, please refer to the `Latest Company Announcements'     
    page on the GEM website at www.hkgem.com.