09:26     KINGWAY BREW<00124> - Announcement (1)                              

    The Stock Exchange of Hong Kong Limited takes no                          
    responsibility for the contents of this announcement,                     
    makes no representation as to its accuracy or                             
    completeness and expressly disclaims any liability                        
    whatsoever for any loss howsoever arising from or in                      
    reliance upon the whole or any part of the contents                       
    of this announcement.                                                     
                                                                              
    KINGWAY BREWERY HOLDINGS LIMITED                                          
    (Incorporated in Bermuda with limited liability)                          
    (Stock Code: 124)                                                         
                                                                              
    The Board has noted the increase in the price and                         
    trading volume of the shares of the Company on 20                         
    January 2005 and states hereby that it has been                           
    informed by GDH, the controlling shareholder of the                       
    Company, that GDH is engaged in preliminary                               
    discussions with Heineken - APB, a substantial                            
    shareholder of the Company, regarding a possible                          
    increase by Heineken - APB of its shareholding                            
    interest in the Company. To the best of the Board's                       
    knowledge, the discussions are at a very preliminary                      
    stage and may or may not lead to any acquisition which                    
    would trigger an obligation to make a mandatory offer                     
    under The Hong Kong Code on Takeovers and Mergers,                        
    or any acquisition at all.                                                
                                                                              
    The board of directors (the "Board") of Kingway                           
    Brewery Holdings Limited (the "Company") has noted                        
    the increase in the price and trading volume of the                       
    shares of the Company on 20 January 2005 and states                       
    hereby that it has been informed by GDH Limited                           
    ("GDH"), the controlling shareholder of the Company                       
    holding approximately 52.63%, that GDH is engaged in                      
    preliminary discussions with Heineken - APB (China)                       
    Pte Ltd. ("Heineken - APB"), a substantial                                
    shareholder of the Company holding approximately                          
    21.44%, regarding a possible increase by Heineken -                       
    APB of its shareholding interest in the Company. To                       
    the best of the Board's knowledge, the discussions                        
    are at a very preliminary stage and may or may not                        
    lead to any acquisition which would trigger an                            
    obligation to make a mandatory offer under The Hong                       
    Kong Code on Takeovers and Mergers, or any acquisition                    
    at all. The Board will issue a further announcement                       
    if and when there is any material development of which                    
    it becomes aware. Save in relation to the discussions,                    
    the Company is not aware of any other reasons for the                     
    increase in the price and trading volume of the shares                    
    of the Company.                                                           
                                                                              
    Shareholders of the Company and potential investors                       
    are advised to exercise caution when dealing in the                       
    shares of the Company.                                                    
                                                                              
    Save for the above, the Board also confirms that there                    
    are no negotiations or agreements relating to                             
    intended acquisitions or realisations which are                           
    discloseable under Listing Rule 13.23, neither is the                     
    Board aware of any matter discloseable under the                          
    general obligation imposed by Listing Rule 13.09,                         
    which is or may be of a price-sensitive nature.                           
                                                                              
    Made by the order of the Company, the Board of which                      
    individually and jointly accept responsibility for                        
    the accuracy of this statement.                                           
                                                                              
    On behalf of the Board                                                    
    Ye Xuquan                                                                 
    Chairman                                                                  
                                                                              
    Hong Kong, 20 January 2005