09:50     MEDTECH GROUP<01031>-Announcement & Resumption of Trading-11        

    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; vi) Mr. Chan Man Si, and his associates;                      
    and vii) the Vendors and their respective associates.                     
    As at the date of this announcement to the best of                        
    the Directors' knowledge, information and belief                          
    having made all reasonable enquiry, the Purchaser,                        
    its ultimate beneficial owner and their respective                        
    associates do not hold any Shares.                                        
                                                                              
    The Purchaser is an investment holding company for                        
    the purpose of holding the 35% shareholding interest                      
    in Starway. The Company approached Mr. Li Hing Sing                       
    through the management of the Company who was                             
    acquainted with Mr. Li Hing Sing in social occasion.                      
                                                                              
    Asset to be disposed                                                      
    The asset to be disposed of by the Company is its entire                  
    35% shareholding interest in Starway which is engaged                     
    in the manufacturing and sale of advanced technology                      
    energy-saving products in the PRC. For information                        
    purpose, the 65% shareholding interest in Starway is                      
    held by China Energy Savings Technology, Inc. listed                      
    on Over-the-Counter Bulletin Board on NASDAQ.                             
                                                                              
    For the years ended 31 December 2002 and 31 December                      
    2003, Starway recorded an audited consolidated net                        
    profit after taxation of approximately HK$13.1                            
    million and HK$70.2 million respectively, and                             
    recorded an audited consolidated net profit before                        
    taxation (and extraordinary items) of approximately                       
    HK$19.9 million and HK$85.5 million respectively. As                      
    at 31 December 2003, the total consolidated assets                        
    of Starway amount to HK$169,419,000.                                      
                                                                              
    Consideration                                                             
    The consideration for the Disposal is HK$52,000,000                       
    in cash payable upon completion of the Disposal and                       
    was determined after arm's length negotiation between                     
    Win Matching and Sky Beyond based on 4% premium over                      
    the original acquisition price of the 35% interest                        
    in Starway by Win Matching of HK$50,000,000.                              
                                                                              
    Conditions precedent                                                      
    Completion of the Disposal (independent of the                            
    Acquisition) is conditional upon the passing by the                       
    Shareholders in general meeting of the ordinary                           
    resolution approving the Disposal in accordance with                      
    the relevant requirements of the Listing Rules.                           
                                                                              
    It is expected that completion of the Disposal will                       
    take place on the third business day after fulfillment                    
    of the conditions of the Disposal.                                        
                                                                              
    Reasons for the Disposal                                                  
    The Company acquired 35% shareholding interest in                         
    Starway from Eurofaith Holdings Inc. in August 2004                       
    at a cash consideration of HK$50 million, details of                      
    which were set out in the Company's announcement dated                    
    15 June 2004. Notwithstanding that Starway has made                       
    profits these years, the Directors consider that the                      
    Disposal is in a step towards the realignment of the                      
    business direction of the Group in view of the new                        
    strategic business diversification direction of the                       
    Group towards the hotel business with gaming                              
    entertainment in Macau. In addition, there will be                        
    a gain on disposal of