09:30 MAGICIAN IND<00526>-Announcement & Resumption of Trading(2) Resumption of trading At the request of the Company, trading in the securities of the Company has been suspended since 2:30 p.m. on 10 December 2004 pending the publication of this announcement and application has been made for the trading of the securities of the Company to be resumed with effect from 9:30 a.m. on 17 January 2005. The board of directors (the "Board") of Magician Industries (Holdings) Limited (the "Company") is pleased to announce that the Board had duly passed various resolutions at the Board meeting on 10 December 2004 including the following: 1. Appointment of Company Secretary Mr. Kwong Alvin Lin-pik ("Mr. Kwong") has been appointed as the Company Secretary with effect from 14 January 2005. The previous Company Secretary, Mr. Ng Fun Hung, resigned on 30 September 2004 with immediate effect, and since then and up to (but excluding) the date of the effective appointment of Mr. Kwong as Company Secretary, the position of Company Secretary has been vacant. During the intervening period, the Company was in search of a suitable candidate to take up the position of Company Secretary. Mr. Kwong is a professional accountant and a fellow member of the Hong Kong Institute of Certified Public Accountants. Mr. Kwong was also the Company Secretary of the Company from 28 June 2000 to 19 November 2003 and has been the chief financial officer of the Company since 7 December 2004. 2. Replacement of Chairman of the Company Mr. Will Hoon Wee Teng ("Mr. Hoon") has been appointed as the Chairman of the Company to replace Mr. Kong Yick Ming ("Mr. Kong") with effect from 10 December 2004. Mr. Hoon has been a non-executive director of the Company since 18 October 2004. As disclosed in the Company's announcement dated 26 October 2004, Mr. Hoon is also an Executive Vice President and a director of Transpac Capital Pte Ltd. The change in the chairmanship of the Company resulted from disagreements in relation to Mr. Kong's management of the Group (being the Company and its subsidiaries) and chairmanship of the Company. The Company has not received information from the substantial shareholders regarding any shareholding change. The change of the Chairman of the Company was not caused by any shareholding change. The Group was founded in the early 1970's by Mr. Kong Chi Ching, the father of Mr. Kong. Following the appointment of Mr. Hoon as the Chairman of the Company and the appointment of Mr. Patrick Zee ("Mr. Zee"), the General Manager of the Company since 29 September 2004, as an executive director, the management powers and functions of the Board will be overseen by Mr. Hoon and implemented by Mr. Zee in accordance with the directions of the Board from time to time. Following the replacement of the Chairman of the Company, the Board sought to improve the overall management of the Group and one of the measures to achieve this is the Company's recent recruitment of a team of professional senior managers including some of the former senior managers of the Group who are familiar with the operations and management of the Group. The team of professional senior managers will be involved in the day to day operations of the Group. The Board is of the view that the above changes in the personnel of the Group at the board level and the operational level will enable the Group to be managed and operated in a more professional and systematic manner. The Board is also of the view that the appointment of Mr. Hoon as Chairman and Mr. Zee as the General Manager and executive director is consistent with the recommended practice of the segregation of the duties and positions of chairman and chief executive officer (or equivalent position) for a company and, hence, the Board considered the appointments to be in the interests of the Company. The existing Board will seek to strengthen and improve the management of the existing business of the Group.