09:33     DAIDO GROUP<00544> - Announcement (2)                               

    Shareholders in the SGM to approve the Disposal and                       
    the Lease Arrangement. Accordingly, the Disposal and                      
    the Lease Arrangement may or may not proceed.                             
    Shareholders and potential investors should                               
    therefore exercise caution when dealing in the shares                     
    of the Company and if they are in any doubt about their                   
    position, they are recommended to consult their                           
    professional advisers.                                                    
                                                                              
    By order of the Board                                                     
    Choy Kai Sing                                                             
    Company Secretary                                                         
                                                                              
    Hong Kong, 20 January 2005                                                
                                                                              
    *  For identification purposes only                                       
                                                                              
    NOTICE OF SPECIAL GENERAL MEETING                                         
                                                                              
    NOTICE IS HEREBY GIVEN THAT a special general meeting                     
    (the "SGM") of Daido Group Limited (the "Company")                        
    will be held on Monday, 7 February 2005 at 10:00 a.m.,                    
    at Plaza IV, Lower Lobby, Novotel Century Hong Kong,                      
    238 Jaffe Road, Wanchai, Hong Kong, for the purpose                       
    of considering and, if thought fit, passing the                           
    following resolution, with or without modifications,                      
    as an ordinary resolution of the Company:-                                
                                                                              
    "THAT (a) the agreement dated 13 December 2004 entered                    
    into between Lubrano Properties Limited (as vendor),                      
    two private funds managed by LaSalle Investment                           
    Management Asia Pty. Ltd (as purchasers) and the                          
    Company (as guarantor) in relation to the sale and                        
    purchase of the entire issued share capital of Best                       
    Goal International Limited and Double Worth Profits                       
    Limited (the "Sale and Purchase Agreement"), a copy                       
    of which has been produced to the meeting and marked                      
    "A" and signed by the chairman of the meeting for the                     
    purpose of identification and the transactions                            
    contemplated therein be and are hereby approved,                          
    confirmed and ratified by way of poll and that any                        
    director of the Company from time to time be and is                       
    hereby authorised to do all acts, take all steps and                      
    execute all documents necessary or expedient in                           
    his/her absolute discretion to implement and/or give                      
    effect the Sale and Purchase Agreement and the                            
    transactions contemplated therein; (b) the                                
    arrangements between Brilliant Gain Investments                           
    Limited ("Brilliant Gain"), Diamond Sparkling                             
    Limited ("Diamond Sparkling") and the existing tenant                     
    ("Tenant") of Kwai Chung Town Lot No. 360 together                        
    with the messuages, erections and buildings thereon                       
    (No. 8 Kwai Hei Street, Kwai Chung, the New                               
    Territories) ("Property I") regarding the leasing of                      
    Property I (the "Leasing Arrangement I"), particulars                     
    of which are set out in a lease to be entered into                        
    between Brilliant Gain and Diamond Sparkling (the                         
    "Lease I") and a sub-lease to be entered into between                     
    Diamond Sparkling and the Tenant (the "Sub-lease I"),                     
    be and are hereby approved and confirmed by way of                        
    poll and that any director of the Company from time                       
    to time be and is hereby authorised to do all acts,                       
    take all steps and execute all documents necessary                        
    or expedient in his/her absolute discretion to                            
    implement and/or give effect the Leasing Arrangement                      
    I, the Lease I and the Sub-lease I and the transactions                   
    contemplated therein; and (c) the arrangements                            
    between Ultimate Profits Limited ("Ultimate                               
    Profits"), Diamond Sparkling and the existing tenant                      
    of Kwai Chung Town Lot No. 288 together with the                          
    messuages, erections and buildings thereon (Nos.                          
    11-19 Wing Yip Street, Kwai Chung, the New Territories)                   
    ("Property II")