09:18 NORTHERN INT'L<00736> - 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. NORTHERN INTERNATIONAL HOLDINGS LIMITED (Incorporated in Bermuda with limited liability) (Stock Code : 736) (the "Company") ANNOUNCEMENT The Board has noted the recent decrease in the price and increase in trading volume of the shares of the Company and wishes to state that it is not aware of any reasons for such unusual movements save for the information disclosed below. Reference is made to the Announcement dated 4 January 2005. As stated in the Announcement, the Board was not aware of any reasons for the increases in the price and trading volume of the Shares on 4 January 2005 save for the announcements dated 15 December 2004 and 29 December 2004 issued by the Company. Mr. Alexander Chu disposed of a total of 4,500,000 Shares on 4 January 2005, which was not mentioned in the Announcement. The Company clarifies that save for the announcements dated 15 December 2004 and 29 December 2004 and the Unannounced Disposal, it was not aware of any reasons for the increases in the price and trading volume of the Shares as mentioned in the Announcement. The Stock Exchange is looking into the matter and, reserves the right to take action against the Company and its directors. This statement is made at the request of the Stock Exchange of Hong Kong Limited (the "Stock Exchange"). The board of directors of the Company (the "Board") has noted the recent decrease in the price and increase in trading volume of the shares of the Company and wishes to state that it is not aware of any reasons for such unusual movements, save for the announcements dated 15 December 2004, 29 December 2004, 4 January 2005 issued by the Company and the Unannounced Disposal disclosed below. The Board also confirms that, save as mentioned above, there are no negotiations or agreements relating to intended acquisitions or realizations which are discloseable under rule 13.23, neither is the Board aware of any matter discloseable under the general obligation imposed by rule 13.09, which is or may be of a price-sensitive nature. Clarification For The Announcement Dated 4 January 2005 Reference is made to the announcement of the Company dated 4 January 2005 in which the Company stated that the Board had noted the recent increases in the price and trading volume of the Shares on 4 January 2005 and stated that it was not aware of any reasons for such increases, save for the announcements dated 15 December 2004 and 29 December 2004 issued by the Company (the "Announcement"). On 4 January 2005, the Company received an enquiry from the Stock Exchange of Hong Kong Limited (the "Stock Exchange") regarding certain unusual movements in the price and trading volume of the shares of the Company (the "Shares") on the same date. All directors of the Company had been enquired and confirmed that they were not aware of any reasons for such increases, save for the announcements dated 15 December 2004 and 29 December 2004 issued by the Company and the Company made the Announcement on 4 January 2005. The Company had notified Mr. Chu Bu Yang, Alexander ("Mr. Alexander Chu") in written that if he had dealt in the shares of the Company, he should inform the Company before 16:30 on the same date (the "Written Notification"). The Company had also verbally advised Mr. Alexander Chu several times not to deal in the shares of the Company on the day when the Company's shares had unusual movements in price or trading volume.