09:40     SUNNY GLOBAL<01094> - Announcement (2)                              

    as the Shareholders are concerned and are in the interests of the         
    Company and the Shareholder as a whole.                                   
                                                                              
    Information on Popular Asset:                                             
    Popular Asset was incorporated in Hong Kong in August 2003. Based on      
    the unaudited management accounts of Popular Asset for the period         
    from 8 August 2003 (being the date of incorporation of Popular Asset)     
    to 31 October 2004, Popular Asset recorded a net loss of                  
    approximately HK$107,000 and no profits tax was incurred as Popular       
    Asset did not derive any assessable profit for the same period. Based     
    on the same accounts, the total assets value of Popular Asset as at       
    31 October 2004 was approximately HK$2.4 million.                         
                                                                              
    Popular Asset is principally engaged in the business of the               
    provision of information technology and telecommunication facility        
    management services. It operates a data center in Hong Kong which         
    provides a wide range of services, such as server hosting and             
    facilities management, internet connectivity, systems management and      
    internet technology services and other value-added services.              
                                                                              
    Conditions of the Acquisition:                                            
    Completion of the Acquisition is conditional on the satisfaction of,      
    amongst others, the following conditions on or before 31 January 2005     
    or at such later date as extended in writing between the Purchaser        
    and the Vendor:-                                                          
                                                                              
    (a)                                                                       
    the Purchaser being satisfied with the results of the due diligence       
    review on the business, operation and assets of Popular Asset; and        
                                                                              
    (b)                                                                       
    all necessary consents required (if any) in relation to the               
    Acquisition being granted by third parties (including governmental or     
    official).                                                                
                                                                              
    If any of the above conditions is not satisfied or waived by 31           
    January 2005 (or such other date as the parties may agree), the           
    Acquisition Agreement will lapse.                                         
                                                                              
    The Acquisition Agreement will be completed on the day upon the           
    fulfillment of the conditions or such other date as the parties may       
    agree. The expected date of Completion shall be on or before 31           
    January 2005.                                                             
                                                                              
    Reasons for the Acquisition:                                              
    The Group is principally engaged in the design, manufacture and sale      
    of a wide range of leisure and athletic footwear. The Group is also       
    engaged in information technology business such as the provision of       
    system integration services and the development of information            
    technology infrastructure network in the PRC.                             
                                                                              
    The Board is of the view that the information technology businesses       
    of the Group shall be strengthened and diversified by the                 
    Acquisition. Popular Asset currently operates a data center in Hong       
    Kong. The Acquisition is expected to bring a potential source of          
    recurring income to the Group and provides synergies to the existing      
    information technology related businesses of the Group. The Directors     
    are optimistic that the Acquisition will strengthen the network           
    platform of the Group and facilitate the Company towards the imminent     
    information technology related business opportunities in Hong Kong        
    and the PRC. Given the potentials of the information technology           
    market in the PRC and Hong Kong, the Company shall continue to            
    explore any opportunity for the development and investment of the         
    information technology business in the PRC and Hong Kong.                 
                                                                              
    General                                                                   
    The Acquisition constitutes a discloseable transaction of the             
    Company under Rule 14.06 (2) of the Listing Rules. A circular             
    containing, amongst others, further details of the Acquisition will       
    be despatched to the Shareholders as soon as practicable.                 
                                                                              
    As at the date of this announcement, Messrs. Lee Man Fa, Lin Huis         
    Sheng, Kwok Ming Fai and Tai King Foon are the executive Directors        
    and Messrs. Kan Siu Lun, Liu Kwok Wah and Leung Sai Cheong are the        
    independent non-executive Directors.                                      
                                                                              
    Terms used in this announcement                                           
    `Acquisition'                  the acquisition by the                     
                                   Purchaser from the Vendor of               
                                   the entire issued share                    
                                   capital of Popular Asset                   
                                   pursuant to the Acquisition                
                                   Agreement                                  
    `Acquisition Agreement'        the conditional sale and                   
                                   purchase agreement entered                 
                                   into between the Vendor and                
                                   the Purchaser dated 7 January              
                                   2005 in connection with the                
                                   Acquisition                                
    `Board'                        the board of Directors                     
    `Company'                      Sunny Global Holdings                      
                                   Limited, a company                         
                                   incorporated in Bermuda with               
                                   limited liability and the