09:50     WAI YUEN TONG<00897> - Announcement (2)                             

    The Placing Agent agreed to place the Placing Shares to not less          
    than six placees (the "Placees") which will be independent                
    individual, corporate and/or institutional investors, and their           
    ultimate beneficial owners will not be connected person(s) (as            
    defined in the Listing Rules) of the Company.                             
                                                                              
    Placing price                                                             
                                                                              
    The Placing price is HK$0.065 per Placing Share. The Placing              
    price was determined after arm's length negotiations between              
    the Company and the Placing Agent with reference to, amongst              
    other things, the recent price performance of the Shares on the           
    Stock Exchange. The Placing price represents (i) a discount of            
    about 15.58% to the closing price of HK$0.077 per Share as quoted         
    on the Stock Exchange on the Last Trading Date; (ii) a discount           
    of about 15.36% to the average closing price per Share of about           
    HK$0.0768 as quoted on the Stock Exchange for the last five               
    consecutive trading days up to and including the Last Trading             
    Date; and (iii) a discount of about 17.09% to the average closing         
    price per Share of HK$0.0784 as quoted on the Stock Exchange              
    for the last ten trading days up to and including the Last Trading        
    Date.                                                                     
                                                                              
    The Placing Shares                                                        
                                                                              
    552,000,000 Placing Shares are to be placed by the Placing Agent          
    on a fully underwritten basis.                                            
                                                                              
    The Placing Shares represent i) about 19.97% of the existing              
    issued share capital of the Company of 2,763,869,225 Shares;              
    and ii) about 16.65% of the issued capital of the Company as              
    enlarged by the Subscription of 552,000,000 Shares.                       
                                                                              
    Condition of the Placing                                                  
                                                                              
    The Placing is unconditional.                                             
                                                                              
    THE SUBSCRIPTION AGREEMENT DATED 20 JANUARY 2005                          
                                                                              
    Parties involved                                                          
                                                                              
    The Subscription Agreement was entered into between the Vendor            
    and the Company.                                                          
                                                                              
    Price of the Subscription Shares                                          
                                                                              
    The price of the Subscription Shares is HK$0.065 per Subscription         
    Share. The Subscription price is equivalent to the price of the           
    Placing Shares and was determined after arm's length negotiation          
    between the Company and the Vendor with reference to, amongst             
    other things, the Placing price of the Placing Shares.                    
                                                                              
    Number of Subscription Shares                                             
                                                                              
    The Subscription Shares amount to 552,000,000 new Shares. The             
    Subscription Shares represent i) about 19.97% of the existing             
    issued share capital of the Company of 2,763,869,225 Shares;              
    and ii) about 16.65% of the issued capital of the Company as              
    enlarged by the Subscription of 552,000,000 Shares.                       
                                                                              
    Ranking of Subscription Shares                                            
                                                                              
    The Subscription Shares, when issued and fully paid, will rank            
    pari passu among themselves and with Shares in issue at the time          
    of issue and allotment of the Subscription Shares.                        
                                                                              
    Conditions