09:31     SKYNET(INTL GP)<00577> & PAUL Y-ITC<00498> - J. Ann. (6)            

    Save as disclosed above, Professor Lee did not hold any other             
    directorship in any listed public companies in the last three             
    years. Other than disclosed in this announcement, he does not hold        
    any positions with Paul Y. Engineering or any of its subsidiaries.        
    Professor Lee does not have interest in any shares or underlying          
    shares of Paul Y. Engineering required to be disclosed pursuant           
    to Part XV of the SFO nor does he have any relationship with any          
    directors, senior management or substantial shareholder or                
    controlling shareholder of Paul Y. Engineering. He has not entered        
    into any service contract with Paul Y. Engineering and its                
    subsidiaries and is subject to retirement by rotations and                
    re-election in accordance with the bye-laws of Paul Y. Engineering        
    as mentioned above. There is no agreement between Paul Y.                 
    Engineering and its subsidiaries and Professor Lee in respect of          
    any proposed length of service or prior notice to be given by             
    either party for termination of service with regard to his                
    engagement as an independent non-executive director of Paul Y.            
    Engineering. Mr. Lee will receive a director's fee of HK$300,000          
    per annum, which is determined with reference to the prevailing           
    market conditions.                                                        
                                                                              
    Mr. Iain Ferguson Bruce, aged 63, has more than 40 years of               
    international experience in accounting and consulting. He joined          
    KPMG Hong Kong in 1964 and was its senior partner from 1991 to            
    1996. He is a member of the Institute of Chartered Accountants            
    of Scotland and the Hong Kong Institute of Certified Public               
    Accountants. He serves as an independent non-executive director           
    on the boards of several publicly listed companies in Hong Kong,          
    China Merchants DiChain (Asia) Limited (stock code: 632), Vitasoy         
    International Holdings Ltd. (stock code: 345), Wing On Company            
    International Limited (stock code: 289) and Tencent Holdings              
    Limited (stock code: 700). He is also an independent non-executive        
    director of Noble Group Limited, a company whose shares are listed        
    on the Singapore Exchange Securities Trading Limited, and DF China        
    Technology Inc., a company whose shares are traded on Nasdaq              
    Bulletin Board.                                                           
                                                                              
    Save as disclosed above, Mr. Bruce did not hold any other                 
    directorship in any listed public companies in the last three             
    years. Other than disclosed in this announcement, he does not hold        
    any positions with Paul Y. Engineering or any of its subsidiaries.        
    Mr. Bruce does not have an interest in any shares or underlying           
    shares of Paul Y. Engineering required to be disclosed pursuant           
    to Part XV of the SFO nor does he have any relationship with any          
    directors, senior management or substantial shareholder or                
    controlling shareholder of Paul Y. Engineering. He has not entered        
    into any service contract with Paul Y. Engineering and its                
    subsidiaries and is subject to retirement by rotation and                 
    re-election in accordance with the bye-laws of Paul Y. Engineering        
    as mentioned above. There is no agreement between Paul Y.                 
    Engineering and it subsidiaries and Mr. Bruce in respect of any           
    proposed length of service or prior notice to be given by either          
    party for termination of service with regard to his engagement            
    as an independent non-executive director of Paul Y. Engineering.          
    Mr. Bruce will receive a director's fee of HK$300,000 per annum,          
    which is determined with reference to the prevailing market               
    conditions.                                                               
                                                                              
    8.   RESIGNATION OF DIRECTORS OF PAUL Y. ENGINEERING                      
    To reflect the new management of Paul Y. Engineering, with                
    immediate effect after completion of the Restructuring Proposal,          
    Messrs. Choi Wing Kin, Wu Wing Kin and To Chi resigned as executive       
    directors of Paul Y. Engineering, and Mr. Lo Chi Ho, William              
    resigned as a non-executive director of Paul Y. Engineering.              
    Messrs. Cheung Hon Kit and Ng Wai Hung resigned as independent            
    non-executive directors of Paul Y. Engineering and ceased to be           
    members of the Audit Committee of Paul Y. Engineering.                    
                                                                              
    The above resigning directors have confirmed that there is no             
    disagreement with the Board and there are no matters that need            
    to be brought to the attention of the shareholders of Paul Y.             
    Engineering.                                                              
                                                                              
    9.   CHANGE OF COMPANY SECRETARY AND AGENTS FOR THE SERVICE OF            
    PROCESS OF PAUL Y. ENGINEERING                                            
    With effect from 17th January, 2005, Mr. To Chi resigned and Ms.          
    Mui Ching Hung, Joanna has been appointed as the Company Secretary        
    of Paul Y. Engineering.                                                   
                                                                              
    With effect from 17th January, 2005, Mr. Wong Wing Hoo, Billy and         
    Mr. Lee Hon Chiu have been appointed as the agents for the                
    service of process in Hong Kong of Paul Y. Engineering.