10:27     PACIFIC ANDES<01174> - Announcement & Resumption (13)               

    Partnership, an investment limited partnership under                      
    the Limited Partnership Act for Investment, acting                        
    through its unlimited partner SPIA, which is not a                        
    connected person                                                          
                                                                              
    "Kyoshoku Common        the 3,334 shares of common stock in               
    Kyoshoku to be subscribed by                                              
      Shares"       KILLP on the terms and conditions of the                  
    Subscription Agreement                                                    
                                                                              
    "Kyoshoku Preferred     means 16,000 shares of                            
    redeemable preferred stock in Kyoshoku which                              
      Shares"       KILLP shall subscribe in consideration of                 
    800,000,000 Yen (equivalent to approximately                              
    HK$60,446,000)                                                            
                                                                              
    "Kyoshoku"      Kyoshoku Co., Ltd., a company                             
    incorporated in Japan, which is not a connected person                    
                                                                              
    "Listing Rules" the Rules Governing the Listing of                        
    Securities on The Stock Exchange of Hong Kong Limited                     
                                                                              
    "N. S. Hong"    N. S. Hong Investment (BVI) Limited,                      
    the registered shareholder of approximately 50.61%                        
    of the shares of the Company as at the date of this                       
    announcement                                                              
                                                                              
    "Shareholders'  the shareholders' agreement dated                         
    14 January 2005 entered into between                                      
      Agreement"    PAIH (BVI), KILLP and Kyoshoku in                         
    respect of matters concerning the control, operation                      
    and management of Kyoshoku                                                
                                                                              
    "Share(s)"      share(s) of the Company                                   
                                                                              
    "Shareholders"  Shareholders of the Company                               
                                                                              
    "SPIA"  Sanyo Pacific Investment Advisory Co., Ltd.,                      
    a company established under the laws of Japan, which                      
    is not a connected person                                                 
                                                                              
    "Stock Exchange"        The Stock Exchange of Hong Kong                   
    Limited                                                                   
                                                                              
    "Subscription   the subscription agreement dated 14                       
    January 2005 entered into between                                         
      Agreement"    PAIH (BVI) and KILLP as subscribers and                   
    Kyoshoku and SPIA in respect of, amongst other things,                    
    the subscription of the Subscription Shares by PAIH                       
    (BVI)                                                                     
                                                                              
    "Subscription Shares"   8,000 shares of common stock                      
    in the capital of Kyoshoku, representing 60% of the                       
    enlarged issued common stock of Kyoshoku upon                             
    Completion as enlarged by the issue of the                                
    Subscription Shares and the Kyoshoku Common Shares                        
                                                                              
    "Transactions"  the Shareholders' Agreement and the                       
    transactions contemplated thereunder                                      
                                                                              
    "Yen"   Japanese yen, the lawful currency of Japan                        
                                                                              
    In this announcement, translation of HK$ into Yen is                      
    made for illustration purposes only, at the rate of                       
    HK$1.00 = 13.235 Yen.                                                     
                                                                              
    By order of the Board                                                     
    Pacific Andes International Holdings Limited                              
    Ng Joo Siang                                                              
    Managing Director                                                         
                                                                              
    Hong Kong, 19 January 2005