09:40 TACK FAT GROUP<00928> - 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. TACK FAT GROUP INTERNATIONAL LIMITED (incorporated in the Cayman Islands with limited liability) (Stock Code: 928) DELAY IN DESPATCH OF CIRCULAR AND EXTENSION OF LONG STOP DATE The Circular was not despatched on 10th January, 2005 because the audited financial statements of Sino Legend are required to be updated to 30th September, 2004 for inclusion in the Circular. The Vendor has completed the audited financial statements of Sino Legend up to 30th June, 2004. To the best knowledge of the Directors, the field works of the audit procedures with respect to Sino Legend have been substantially completed and the auditors are now carrying out the internal review procedures and finalisation of the audit report. The Vendor is unable to ascertain the time required for the internal review procedures to be done and the audit report to be finalised but currently estimates it will be substantially completed by 31st January, 2005. The despatch date of the Circular is likely to be approximately one month thereafter. The Company will issue a further announcement once the despatch date of the Circular can be ascertained. The delay in despatch of the Circular constitutes a possible breach of Rule 14.38 of the Listing Rules by the Company and the Stock Exchange reserves its rights to take appropriate action against the Company in this respect. The Group has entered into a supplemental agreement with Lung Investment to further extend the long stop date of the Agreement from 28th February, 2005 to 31st March, 2005. Reference is made to the announcement of the Company dated 30th July, 2004 (the "Announcement") in relation to, among other things, a very substantial acquisition, the announcements of the Company dated 19th August, 2004, 7th September, 2004, 7th October, 2004 and 1st November, 2004 in relation to delay in despatch of the circular. Capitalised terms used in this announcement shall have the same meanings as those defined in the Announcement, unless the context herein requires otherwise. DELAY IN DESPATCH OF CIRCULAR Pursuant to Rule 14.38 of the Listing Rules, the Company is required to despatch a circular (the "Circular") in relation to the Acquisition to the Shareholders within 21 days after publication of the Announcement, which should be on or before 20th August, 2004. On 19th August, 2004, the Company applied to and was granted by the Stock Exchange an extension of time for the despatch of the Circular from 20th August, 2004 to on or before 7th September, 2004. On 7th September, 2004, the Company applied to and was granted by the Stock Exchange to further extend the despatch date of the Circular from 7th September, 2004 to 7th October, 2004, which was then further extended to 1st November, 2004. On 3rd November, 2004 the Company applied to and was granted by the Stock Exchange for a further extension of time for despatch of the Circular from 1st November, 2004 to on or before 10th January, 2005. The Circular was not despatched on 10th January, 2005 because the audited financial statements of Sino Legend are required to be updated to 30th September, 2004 which involves verification of assets, liabilities, revenue and expenditures of Sino Legend for the three months from June to September 2004. For Shareholders' information, the Vendor has completed the audited financial statements of Sino Legend up to 30th June, 2004. To the best knowledge of the Directors, the field works of the audit procedures with respect to Sino Legend have been substantially completed and the auditors are now carrying out the internal review procedures and finalisation of the audit report. The Vendor however is unable to ascertain the time required for the internal review procedures to be done and the audit report to be finalised but currently estimates it will be substantially completed by 31st January, 2005. The despatch date of the Circular is likely to be approximately one month thereafter. The Company is yet to submit all the financial information to be included in the Circular to the Stock Exchange as required under the Listing Rules. The Company will issue a further announcement once the despatch date of the Circular can be ascertained. The delay in despatch of the Circular constitutes a possible breach of