09:49     MEDTECH GROUP<01031>-Announcement & Resumption of Trading-10        

    Kingston Capital Limited and 10,007 Shares through                        
    Kingston Securities Limited as at the date of this                        
    announcement. Both Kingston Capital Limited and                           
    Kingston Securities Limited are controlled by Mrs.                        
    Chu. Sure Expert Limited which is wholly owned by Mrs.                    
    Chu will receive 120,000,000 Shares from Perfect View                     
    as gift and will be granted 800,000,000 warrants by                       
    the Company upon completion of the acquisition of                         
    Grandview Hotel, details of which are set out in the                      
    announcement of the Company dated 14 December 2004.                       
                                                                              
    4.      Mr. Wong Kui Tak is an executive Director and Mr.                 
    Wong King Shiu, Daniel is an independent                                  
    non-executive Director.                                                   
                                                                              
    5.      To the best of the Directors' knowledge,                          
    information and belief having made reasonable                             
    enquiries, the Vendors 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) SJM, its ultimate beneficial                         
    owners and their respective associates (save for the                      
    agreement entered into between Hang Huo Hotel and SJM);                   
    vi) 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.                                                               
                                                                              
    6.      Mr. Chan Man Si and his wife hold 8,666,666 Shares,               
    representing approximately 0.09% of the existing                          
    issued share capital of the Company, as at the date                       
    of this announcement.                                                     
                                                                              
    7.      To the best of the Directors' knowledge,                          
    information and belief having made reasonable                             
    enquiries, each of the holders of the share options                       
    and the outstanding convertible notes of the Company                      
    is 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 respective                            
    associates; v) SJM, its ultimate beneficial owners                        
    and their respective associates; vi) 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.                        
                                                                              
    8.      In the event of exercising any outstanding share                  
    options, convertible notes and warrants after                             
    completion of the acquisition of Grandview Hotel,                         
    there may be implications under the Takeovers Code,                       
    and Perfect View, Choose Right Limited, Sure Expert                       
    Limited, Mrs. Chu, Mr. Lee, Mr. Wong Kui Tak, Mr. Wong                    
    King Shiu Daniel, Ms. Leong On Kei and Mr. Chan Man                       
    Si may be required to comply with the provisions under                    
    the Takeovers Code.                                                       
                                                                              
    THE DISPOSAL                                                              
    The Disposal Agreement                                                    
    Date:   10 January 2005                                                   
                                                                              
    Parties:                                                                  
    Purchaser:      Sky Beyond                                                
                                                                              
    Vendors:        Win Matching, being a wholly-owned                        
    subsidiary of the Company                                                 
                                                                              
    The Company confirms that, to the best of the                             
    Directors' knowledge, information and belief having                       
    made all reasonable enquiry, the Purchaser and its                        
    ultimate beneficial owner, namely Mr. Li Hing Sing,                       
    are third parties independent of i) the