09:36 DYNASTY FINE WINES GROUP LIMITED<00828> - Announcement (2) In order to enable shareholders of Tianjin Development to participate in the Share Offer on a preferential basis as to allocation only, Qualifying Tianjin Shareholders are being invited to apply for an aggregate of 36,000,000 Reserved Shares on an assured basis. The Reserved Shares will represent approximately 12% of the Offer Shares and approximately 3% of the enlarged issued share capital of the Company upon completion of the Share Offer, assuming that the Over-allotment Option is not exercised. With a view to maximizing the opportunity of the public to participate in the Share Offer, Tsinlien and Remy Pacifique have undertaken not to take up their entitlement of the Reserved Shares under the Preferential Offering. Qualifying Tianjin Shareholders are entitled to apply for one Reserved Share for every whole multiple of 26 existing Tianjin Shares held by them at the close of business on Tuesday, 28 December 2004. Any Qualifying Tianjin Shareholders holding less than 26 Tianjin Shares on the Record Date will not be entitled to apply for the Reserved Shares. With a view to maintaining at least the minimum prescribed percentage of the Shares in the hands of the public in compliance with the Listing Rules immediately after the Share Offer, no Reserved Shares will be offered to the directors of the Company or any of their associates (as defined in the Listing Rules) to the extent that they are Qualifying Tianjin Shareholders. Please refer to the Prospectus for the details of the Share Offer. Qualifying Tianjin Shareholders are permitted to apply for a number of Reserved Shares which is less than or equal to their Assured Entitlement under the Preferential Offering. A valid application in respect of a number of Reserved Shares which is less than or equal to a Qualifying Tianjin Shareholder's Assured Entitlement will be accepted in full, subject to the terms and conditions as set out in the Prospectus and the blue Application Form. Where a Qualifying Tianjin Shareholder applies for a number of Reserved Shares greater than his or her Assured Entitlement, his or her Assured Entitlement will be satisfied in full, subject to the terms and conditions as set out in the Prospectus and the blue Application Form, but the excess portion of such application will not be met. Any Assured Entitlement not taken by Qualifying Tianjin Shareholders will be allocated to the International Placing. All of your applications will be rejected as multiple applications for Hong Kong Public Offer Shares if you, or you and your joint applicant(s) together make more than one application (whether individually or jointly) on a white or yellow Application Form or by giving electronic application instructions to HKSCC; or apply (whether individually or jointly) on one white Application Form and one yellow Application Form or on one white or yellow Application Form and give electronic application instructions to HKSCC; or apply on one white or yellow Application Form (whether individually or jointly) or by giving electronic application instructions to HKSCC for more than 50% of the Shares initially being offered for subscription under the Hong Kong Public Offering (that is, 15,000,000 Hong Kong Public Offer Shares) as more particularly described in the section headed ``Structure of the Share Offer'' of the Prospectus; or on one white or yellow Application Form and have indicated an interest for or have been or will be placed Offer Shares under the International Placing. All of your applications will also be rejected as multiple applications for Hong Kong Public Offer Shares if more than one application is made for your benefit (including the part of an application made by HKSCC Nominees acting on electronic application instructions). Applicants for Shares under the Hong Kong Public Offering are required to undertake and confirm that they or their relevant beneficial owner(s) have not indicated an interest and/or applied for or taken up, and will not indicate an interest for or take up, any Shares under the International Placing (except in respect of Reserved Shares applied for pursuant to the Preferential Offering). In addition to any application for Reserved Shares, Qualifying Tianjin Shareholders will be entitled to apply for Hong Kong Public Offer Shares on white or yellow Application Forms or by giving electronic application instructions to HKSCC via CCASS subject to the terms and conditions of the Public Offer. Qualifying Tianjin Shareholders will receive no preference as to entitlement or allocation in respect of applications for Hong Kong Public Offer Shares made on white or yellow Application Forms or by giving electronic application instructions to HKSCC via CCASS subject to the terms and conditions of the Public Offer. The procedure for application under the Preferential Offering is set out in the section headed ``How to apply for Hong Kong Public Offer Shares and Reserved Shares'' in the Prospectus and in the blue Application Form.