09:36     SKYNET(INTL GP)<00577> & PAUL Y-ITC<00498> - J.Ann. (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.                                                     
                                                                              
    Paul Y. Engineering Group Limited                                         
    (formerly known as                                                        
    Skynet (International Group) Holdings Limited                             
    (incorporated in Bermuda with limited liability)                          
    (Stock Code: 577)                                                         
                                                                              
    (1) PLACING OF EXISTING SHARES                                            
    (2) RESTORATION OF PUBLIC FLOAT                                           
    (3) RESUMPTION OF TRADING                                                 
    (4) CHANGE OF NAME                                                        
    (5) CHANGE IN BOARD LOT SIZE                                              
    (6) TRADING ARRANGEMENTS RELATING TO CAPITAL                              
    REORGANISATION                                                            
                                                                              
    PAUL Y. - ITC CONSTRUCTION HOLDINGS LIMITED                               
    (incorporated in Bermuda with limited liability)                          
    (Stock Code: 498)                                                         
                                                                              
    PLACING OF EXISTING SHARES IN                                             
    PAUL Y. ENGINEERING GROUP LIMITED                                         
                                                                              
    Placing of existing shares of Paul Y Engineering and                      
    restoration of public float                                               
    Paul Y Engineering has been informed by Paul Y, the                       
    controlling shareholder of Paul Y Engineering, that                       
    Paul Y has on 24th January, 2005 engaged Tai Fook                         
    Securities Company Limited for the placing of                             
    156,000,000 Consolidated Shares at a price of HK$1.0                      
    per Consolidated Share on a "best efforts" basis.                         
                                                                              
    The Placing Shares represent approximately 27.0% of                       
    the existing issued shares of Paul Y Engineering. Upon                    
    completion of the Placing, the shareholding interest                      
    of Paul Y in Paul Y Engineering will decrease from                        
    approximately 92.2% to approximately 65.2%. The net                       
    proceeds of approximately HK$152.8 million arising                        
    from the Placing are intended to be used by Paul Y for                    
    its general working capital purposes. As a result of                      
    the Placing, an estimated gain of approximately HK$65                     
    million will be recorded by Paul Y for the year ending                    
    31st March, 2005.                                                         
                                                                              
    Completion of the Placing is expected to take place                       
    on 25th January, 2005. Further announcement will be                       
    made upon completion of the Placing (which is expected                    
    to be published on Thursday, 27th January, 2005).                         
    Following completion of the Placing, the public float                     
    of Paul Y Engineering will be restored.                                   
                                                                              
    Suspension and resumption of trading in shares of Paul                    
    Y Engineering:                                                            
                                                                              
    Trading in the shares of Paul Y Engineering on the Stock                  
    Exchange has been suspended at the request of Paul Y                      
    Engineering with effect from 9:30 a.m. on 16th October,                   
    2003. Following the restoration of the public float                       
    of Paul Y Engineering upon completion of the Placing                      
    and the issue of a resumption announcement which is                       
    expected to be published on Thursday, 27th January,                       
    2005, it is expected that the trading of shares of Paul                   
    Y Engineering will resume on Thursday, 27th January,                      
    2005. Application will be made by Paul Y Engineering                      
    for the resumption of trading in shares of Paul Y                         
    Engineering with effect from 9:30 a.m. on Thursday,                       
    27th January, 2005.                                                       
                                                                              
    Change of name                                                            
    Paul Y Engineering received the certificate of                            
    incorporation on change of name issued by the                             
    Registrar of Companies of Bermuda on 21st January,                        
    2005. In accordance with such certificate, the change                     
    of the English name of Paul Y Engineering became                          
    effective on 18th January, 2005. In line with such                        
    change in English name, the Company has adopted the                       
    new Chinese name "*" in place of the                                      
    previous Chinese name "*" for                                             
    identification purpose.                                                   
                                                                              
    Further announcement will be made regarding the change                    
    of the stock short name for trading in the shares of                      
    Paul Y Engineering on the Stock Exchange.