10:15 A-MAX<00959> - Announcement & Resumption (3) As to the articles regarding Greek Mythology's plan to exercise its right to convert the convertible notes (the "Convertible Notes") to be issued by the Company pursuant to a subscription agreement dated 30 November 2004 and to increase its shareholding interests in the capital of the Company, the Company wishes to clarify that the issue of the Convertible Notes to Greek Mythology is subject to shareholders' approval in the special general meeting of the Company held on 21 January 2005 (the "Special General Meeting"). There is no certainty that shareholders' approval could be obtained in the Special General Meeting. As at the date of this announcement, no agreement or arrangement has been reached between the Company and Greek Mythology as to whether or not or when to exercise the Convertible Notes if they are issued to Greek Mythology. Prior to the publication of the Articles, the Company has no knowledge regarding Greek Mythology's intention to increase its shareholding interests in the capital of the Company. Saved as disclosed above, the Board confirms that there are no negotiations or agreements relating to intended acquisitions and realizations which are discloseable under Rule 13.23 of the Listing Rules, neither is the Board aware of any matter discloseable under the general obligation imposed by Rule 13.09 of the Listing Rules, which is or may be of a price-sensitive nature. The Board has been informed that Mr. Lu Zhi Qun ("Mr. Lu") has disposed of 48,525,745 shares in the Company, representing approximately 7.49% of the capital of the Company, on the Stock Exchange at the highest price of HK$2.075 and the average price of HK$1.82 on 13 January 2005. After the disposal, Mr. Lu ceases to be a shareholder of the Company and does not hold any beneficial interest or convertible securities in the capital of the Company. Mr. Lu acquired 7 convertible notes issued by the Company in the aggregate principal amount of HK$1,400,000 from Dame Fortune Investments Limited on 10 June 2004. The convertible notes were originally subscribed by Firstcom Technology Limited pursuant to a subscription agreement dated 20 February 2004 entered into between the Company and Firstcom Technology Limited and Firstcom Technology Limited subsequently transferred the convertible notes to Dame Fortune Investments Limited on 4 June 2004. By the exercise of convertible notes in the aggregate principal amount of HK$1,400,000, Mr. Lu became a shareholder of the Company on 12 November 2004 holding 161,980,745 shares in the Company, representing approximately 28.93% of the capital of the Company (being 559,869,670 shares) as at that date. Since then, he gradually reduced his shareholding interests in the Company by several disposals on the Stock Exchange. Particulars of the disposals as shown on the register kept by the Company in accordance with section 336 of the Securities and Futures Ordinance (Cap. 571 of the Laws of Hong Kong) are as follows: Approximate Approximate Date of disposal percentage of the percentage of the (Date of receipt shares disposed shareholding in of "Individual Substantial in the share the share capital Shareholder Notice" Number of capital of the of the Company ("Form 1") from Mr. Lu Shares held by Company as at immediately by the Company) Number of Average Highest Mr. Lu after the date of after the(D-M-Y) Shares disposed Price Price the disposal disposal disposal (HK$) (HK$) (%) (%) 14-12-2004 27,000,000 2.11 2.175 134,980,745 4.17 20.83 (15-12-2004) 23-12-2004 5,900,000 3.846 3.875 129,080,745 0.91 19.92 (23-12-2004) 28-12-2004 11,500,000 2.8 2.875 117,580,745 1.77 18.14 (29-12-2004) 29-12-2004 5,000,000 3.0 3.00 112,580,745 0.77 17.37 (30-12-2004) 30-12-2004 12,805,000 2.81 2.85 99,775,745 1.98 15.39 (31-12-2004) 3-1-2005 15,100,000 2.85 2.90 84,675,745 2.33 13.06 (3-1-2005) 6-1-2005 5,300,000 2.82 2.825 79,375,745 0.82 12.25 (7-1-2005) 10-1-2005 7,850,000 2.25 2.275 71,525,745 1.21 11.04 (11-1-2005) 12-1-2005 23,000,000 1.44 1.63 48,525745 3.55 7.49 (13-1-2005)