10:43 DYNASTY FINE WINES GROOUP LIMITED<00828> - Announcement (4) APPLICATIONS RECEIVED AND ALLOCATION OF RESERVED SHARES The Directors further announce that at the close of the application lists at 12:00 noon on Thursday, 20 January 2005, a total of 53 valid applications were received pursuant to the Preferential Offering on blue Application Forms for a total of 8,358,009 Reserved Shares were received, representing approximately 0.2 times total number of 36,000,000 Reserved Shares, 12% of the Offer Shares, set aside for subscription by Qualifying Tianjin Shareholders under the Preferential Offering and representing approximately 2.8% of the Offer Shares available under the Share Offer. Valid applications made by Qualifying Tianjin Shareholders on blue application forms in respect of a number of Reserved Shares less than or equal to a Qualifying Tianjin Shareholder's Assured Entitlement will be conditionally allotted in full. INTERNATIONAL PLACING The Directors further announce that valid applications were received for more than 234,000,000 International Placing Shares, 78% of the Offer Shares, initially available to professional, institutional and other investors under the International Placing. The International Placing Shares were very significantly over-subscribed. A total of 114,000,000 International Placing Shares under the International Placing was conditionally allocated in full and 27,641,991 unsubscribed Reserved Shares were reallocated from the Preferential Offering to the International Placing. The total number of Offer Shares available under the International Placing will be adjusted to 141,641,991 Offer Shares, representing approximately 47.2% of the total number of Offer Shares available under the Share Offer. The Hong Kong Public Offer Shares and the International Placing Shares were allocated to placees who are independent of, and not connected with, any of the directors, the chief executive or the substantial shareholders of the Company or any of its subsidiaries, or any of their respective associates (as defined under the Listing Rules). A total of 850,000 Offer Shares (being approximately 0.4% of the International Placing Shares initially available to professional, institutional and individual investors under the International Placing for subscription and sale by the Company) have been placed to the funds managed by ABN AMRO Asset Management (Asia) Limited as investment manager. ABN AMRO Asset Management (Asia) Limited is a company which is a member of the same group of companies as ABN AMRO Bank N.V.. ABN AMRO Rothschild, the Global Coordinator of the Share Offer, is an unincorporated equity capital markets joint venture between ABN AMRO Bank N.V., Hong Kong Branch and N M Rothschild & Sons (Hong Kong) Limited, each trading as ABN AMRO Rothschild. The International Placing is in compliance with the placing guidelines for equity securities as set out in Appendix 6 to the Listing Rules. None of the Sponsor, the Global Coordinator, the Underwriters or their respective associates and connected clients (as defined in Appendix 6 to the Listing Rules) has subscribed for any Offer Shares for its own account under the Placing. None of the Sponsor, the Global Coordinator, and the Underwriters has subscribed or taken up any Offer Shares for their own benefit under the Share Offer. The Company has granted to the Global Coordinator the Over-allotment Option to require the Company to allot and issue, up to an aggregate 45,000,000 additional Shares exercisable within 30 days of the last day of the lodging of applications under the Hong Kong Public Offering. The Global Coordinator has borrowed 45,000,000 Shares from Famous Ever under the stock borrowing arrangement on 20 January 2005 to cover over-allocations under the International Placing. The Global Coordinator may choose to exercise the Over-allotment Option or acquire Shares in the secondary market to return the loaned Shares to Famous Ever under the stock borrowing arrangement. If the Over-allotment Option is exercised, a press announcement will be made. BASIS OF ALLOCATION A total of 53 valid applications were received from Qualifying Tianjin Shareholders on blue Application Forms for a total of 8,358,009 Reserved Shares. 8,358,009 Reserved Shares will be allocated to Qualifying Tianjin Shareholders as their assured entitlements. 27,641,991 unsubscribed Reserved Shares have been reallocated to the International Placing.