09:50     FOREFRONT INT'L<00885> - Announcement (3)                           

    irregularities occurring. RSM's role has since developed as a result of   
    its investigations and its formal terms of engagement have now been       
    agreed.                                                                   
                                                                              
    GENERAL                                                                   
                                                                              
    The primary business of the Group remains the distribution of Scania      
    trucks and coaches and accessories. RSM is a leading specialist           
    insolvency, forensic accounting and corporate restructuring practices in  
     the Asia Pacific region. Mr. Flynn, a director of RSM, is the            
    provisional liquidator of Forefront International Limited (in             
    liquidation) ("FIL") and Ever Wealth Management Limited (in liquidation)  
     ("EWL").                                                                 
                                                                              
    FIL is a controlling shareholder of the Company and has an attributable   
    interest of approximately 34.4% in the issued share capital of the        
    Company.                                                                  
                                                                              
    EWL is a substantial shareholder of the Company and has an attributable   
    interest of approximately 24.03% in the issued share capital of the       
    Company.                                                                  
                                                                              
    CONTINUING CONNECTED TRANSACTION                                          
                                                                              
    RSM is a connected person of the Company by virtue of it being an         
    associate of Mr. Flynn and Mr. Borrelli. Accordingly, the Engagement of   
    RSM constitutes a continuing connected transaction of the Company under   
    Chapter 14A of the Listing Rules.                                         
                                                                              
    The Board believes that the Engagement is fair and reasonable and in the  
     interests of the shareholders as a whole. The independent non-executive  
     directors are of the view that, since the Engagement is on normal        
    commercial terms, it is fair and reasonable and in the interests of the   
    shareholders as a whole.                                                  
                                                                              
    The Engagement is required to be disclosed by way of a press              
    announcement. No independent shareholders' approval is required for the   
    Engagement. Relevant details will also be included in the next published  
     annual report and accounts of the Company in accordance with Rule        
    14A.45 of the Listing Rules.                                              
                                                                              
    Trading in the shares of the Company on The Stock Exchange of Hong Kong   
    Limited was suspended from 9.30 a.m. on 14 May 2004 at the request of     
    the Company and will remain suspended until further notice.               
                                                                              
    By Order of the Board                                                     
    Kelvin Edward Flynn                                                       
    Executive director                                                        
                                                                              
    Hong Kong, 27 January 2005                                                
                                                                              
    *  for identification purpose only                                        
                                                                              
    As at the date of this announcement, the Board comprises Mr. Kelvin       
    Edward Flynn as sole executive director, Mr. Paul Gerard Davies and Mr.   
    Cosimo Borrelli as non-executive directors, and Mr. Lau Siu Ki, Kevin,    
    Mr. Cheong Ying Chew, Henry and Mr. Alistair Macleod as independent       
    non-executive Directors.