09:36 SKYNET(INTL GP)<00577> & PAUL Y-ITC<00498> - J.Ann. (2) Change in board lot size The board lot for trading in the Consolidated Shares will be changed to 2,000 Consolidated Shares with effect from 9:30 a.m. on 27th January, 2005. Timetable for trading arrangements The expected timetable for resumption of trading in the shares of Paul Y Engineering, the associated trading arrangements after the Capital Reorganisation, the change of board lot size and odd lot trading facility is set out below. Shareholders will be informed of any changes to the expected timetable by press notice. The making of this announcement by Paul Y is pursuant to Rule 13.09 of the Listing Rules. Reference is made to (i) the joint announcements made by Paul Y. Engineering Group Limited (formerly known as Skynet (International Group) Holdings Limited) ("Paul Y Engineering", together with its subsidiaries the "Paul Y Engineering Group"), Paul Y and ITC dated 4th June, 2004, 25th June, 2004, 13th August, 2004, 3rd September, 2004, 9th September, 2004, 20th October, 2004 and 30th November, 2004; (ii) the announcements made by Paul Y Engineering dated 4th October, 2004, 15th December, 2004, 22nd December, 2004 and 30th December, 2004; (iii) the joint announcement made by Paul Y Engineering and Paul Y dated 17th January, 2005; and (iv) the circular of Paul Y Engineering (the "Circular") dated 30th November, 2004 in relation to, among other things, the Restructuring Proposal and the application for Whitewash Waiver. Unless otherwise defined herein, capitalised terms used herein have the meanings ascribed thereto in the Circular. The Restructuring Proposal was fully implemented on 17th January, 2005. 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 (the "Placing Agent") for the placing (the "Placing") of 156,000,000 Consolidated Shares (the "Placing 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 share capital of Paul Y Engineering. The Placing Shares are at present held by Paul Y through its wholly-owned subsidiary, Paul Y. Investments Limited. The Placing is conditional on the release of an announcement stating the expected date for the resumption of trading of the Consolidated Shares. Accordingly, following the release of this announcement, the Placing will become unconditional and 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). The issue price of HK$1.0 per Placing Share represents: (i) a discount of 60.0% to the theoretical closing price of HK$2.5 for each Consolidated Share based on the closing price of HK$0.01 per Share, being the minimum trading price allowable under the trading system of the Stock Exchange, on the Last Trading Day; (ii) a discount of 60.0% to the average theoretical closing price of HK$2.5 for each Consolidated Share for the 10 trading days ended on the Last Trading Day; and (iii) a premium of 132.6% to the pro forma adjusted net tangible asset value per Consolidated Share upon completion of the Restructuring Proposal of HK$0.43 as disclosed in the Circular.