09:34     HYCOMM WIRELESS<00499> - Announcement (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 this announcement.                                   
                                                                              
    HYCOMM WIRELESS LIMITED*                                                  
    (Incorporated in Bermuda with limited liability)                          
    (Stock code: 499)                                                         
                                                                              
    PROPOSED INCREASE IN AUTHORISED SHARE CAPITAL                             
                                                                              
    The Board intends to put forward a proposal to the Shareholders to        
    increase the authorised share capital of the Company from HK$300,000,000  
     divided into 3,000,000,000 Shares to HK$600,000,000 divided into         
    6,000,000,000 Shares by the creation of an additional 3,000,000,000       
    Shares.                                                                   
                                                                              
    A circular containing details of the Capital Increase and the notice      
    convening the SGM for approving the Capital Increase will be sent to the  
     Shareholders as soon as practicable.                                     
                                                                              
    1.   THE CAPITAL INCREASE                                                 
                                                                              
    The Board intends to put forward a proposal to the Shareholders to        
    increase the authorised share capital of the Company from HK$300,000,000  
     divided into 3,000,000,000 Shares to HK$600,000,000 divided into         
    6,000,000,000 Shares by the creation of an additional 3,000,000,000       
    Shares.                                                                   
                                                                              
    2.   REASON FOR THE CAPITAL INCREASE                                      
                                                                              
    As at the date of this announcement, the authorised share capital of the  
     Company was HK$300,000,000 divided into 3,000,000,000 Shares, of which   
    2,980,639,015 Shares have already been issued, representing               
    approximately 99.4% of its existing authorised share capital. Only        
    19,360,985 Shares are left unissued and available for further allotment   
    and issue by the Company.                                                 
                                                                              
    In order to provide the Company with greater flexibility to raise funds   
    by allotting and issuing Shares in the future, as and when necessary,     
    the Directors will put forward the proposal for the Capital Increase at   
    the SGM. The Directors consider that the Capital Increase is in the       
    interests of the Company and the Shareholders as a whole.                 
                                                                              
    The Directors currently have no plans to issue any part of the increased  
     authorised share capital.                                                
                                                                              
    3.   GENERAL                                                              
                                                                              
    The Capital Increase is subject to the approval by the Shareholders by    
    way of an ordinary resolution at the SGM. A circular containing details   
    of the Capital Increase and the notice convening the SGM for approving    
    the Capital Increase will be sent to the Shareholders as soon as          
    practicable.                                                              
                                                                              
    The register of members of the Company will be closed from Tuesday, 15    
    February 2005 to Friday, 18 February 2005, both days inclusive, during    
    which period no transfer of Shares will be registered and effected.       
                                                                              
    4.   DEFINITIONS                                                          
                                                                              
    "Board"   the board of Directors                                          
                                                                              
    "Capital Increase"   the proposal to increase the authorised share        
    capital of the Company from HK$300,000,000 to HK$600,000,000              
                                                                              
    "Company"   HyComm Wireless Limited, a company incorporated in Bermuda    
    with limited liability and the Shares of which are listed on the main     
    board of the Stock Exchange                                               
                                                                              
    "Directors"   the directors of the Company                                
                                                                              
    "SGM"   the special general meeting of the Company to be held on or       
    around 18 February 2005 to approve the Capital Increase                   
                                                                              
    "Shares"   shares of HK$0.10 each in the capital of the Company           
                                                                              
    "Shareholders"   holders of the Shares                                    
                                                                              
    "Stock Exchange"   The Stock Exchange of Hong Kong Limited                
                                                                              
    "HK$"   Hong Kong dollars, the lawful currency of Hong Kong               
                                                                              
    As at the date of this announcement, the Directors are as follows: