09:48     MEDTECH GROUP<01031>-Announcement & Resumption of Trading-7         

    To the best of the Directors' knowledge, information                      
    and belief having made all reasonable enquiries, as                       
    at the date of this announcement, there is a syndicate                    
    in each of the 6 VIP rooms in Casa Real Casino. These                     
    VIP rooms cater mainly to high-rollers and the                            
    services provided by the syndicates include marketing                     
    activities, transportation services, food and                             
    beverage services and accommodation to the VIP guests.                    
    To the best of the Directors' knowledge, information                      
    and belief having made reasonable enquiries, the                          
    syndicates and their beneficial owners are                                
    independent of i) the Company; ii) the connected                          
    persons (as defined under the Listing Rules) of the                       
    Company; iii) Mrs. Chu and her associates; iv) Mr.                        
    Lee, Choose Right Limited and their associates; v)                        
    Ms. Leong On Kei and her associates; vii) Mr. Chan                        
    Man Si, and his associates; and viii) Sky Beyond, its                     
    ultimate beneficial owners and their respective                           
    associates. The gaming activities in the Casa Real                        
    Casino (including the VIP rooms) are operated by SJM.                     
                                                                              
    It is intended that the existing arrangement for the                      
    operation of the Casa Real Casino by SJM under the                        
    same terms set out in the agreement entered into                          
    between Hang Huo Hotel and SJM will continue after                        
    the Acquisition.                                                          
                                                                              
    To the best of the Directors' knowledge, information                      
    and believes having made all reasonable enquiries,                        
    SJM and its ultimate beneficial owners are third                          
    parties independent of each of the Vendors and their                      
    respective associates (save for the agreement entered                     
    into between Hang Huo Hotel and SJM, and the Company                      
    and the connected persons (pursuant to the Listing                        
    Rules) of the Company.                                                    
                                                                              
    Financial information on Hang Huo Hotel                                   
    Based on its unaudited financial statements of Hang                       
    Huo Hotel, for the two years ended 31 December 2002                       
    and 2003, Hang Huo Hotel had a net loss of MOP574,112                     
    (or HK$557,390 equivalent) and MOP9,154,621 (or                           
    HK$8,887,982 equivalent) respectively and therefore                       
    no tax was paid for these two years. Since the Casa                       
    Real Casino commenced operation in 2004, the above                        
    financial figures of Hang Huo Hotel for the two years                     
    ended 31 December 2003 do not reflect any income from                     
    the casino. The Directors believe that the earnings                       
    of the Hang Huo Hotel will improve in the future after                    
    taking into account the income from the Casa Real                         
    Casino.                                                                   
                                                                              
    As at 31 December 2003, the total unaudited                               
    consolidated assets of Hang Huo Hotel amounted to                         
    MOP219,663,300 (or HK$213,265,340 equivalent). Hang                       
    Huo Holdings is an investment holding company formed                      
    for the sole purpose of holding 99% shareholding                          
    interest in Hang Huo Hotel.                                               
                                                                              
    Reasons for the Acquisition                                               
    The Group is principally engaged in the manufacturing                     
    and trading of watches and watch components, the                          
    provision of electroplating services, investment                          
    holding and property holding.                                             
                                                                              
    Following the subscription of new Shares by Perfect                       
    View Development Limited in cash in April 2004, the                       
    Directors have been looking for investment projects                       
    with potential to diversify into other business areas                     
    and to strengthen the earnings of the Group in the                        
    long run. In view that the economy of Macau has been                      
    booming recently following i) the implementation of                       
    the Closer Economic Partnership Arrangement that                          
    stimulates business travels and