10:40     TONIC IND HOLD<00978> - Announcement (8)                            

    through the Rights Issue in order to support the continuing development   
    of the Group's existing business activities. The Rights Issue enables     
    the Company to carry out the fund raising exercise while the Qualifying   
    Shareholders are given the opportunity to maintain their respective pro   
    rata shareholding interests in the Company by participating in the        
    Rights Issue.                                                             
                                                                              
    The estimated net proceeds of the Rights Issue is approximately HK$62     
    million (assuming no outstanding Share Options are exercised on or        
    before the Record Date) or approximately HK$67 million (assuming all      
    outstanding Share Options are exercised in full on or before the Record   
    Date), which is intended to be used for as to approximately HK$30         
    million for the purchase of plant and machinery for a new factory to be   
    completed in early 2005 and as to approximately HK$32 million to HK$37    
    million for the general working capital of the Group.                     
                                                                              
    GENERAL                                                                   
    The Company has not conducted any equity fund raising in the 12-month     
    period immediately preceding the date of this announcement.               
                                                                              
    The Company will despatch the Rights Issue Documents to each of the       
    Qualifying Shareholders and the Prospectus to each of the Excluded        
    Shareholders (if any), for its information only, on or before Friday, 25  
    February 2005.                                                            
                                                                              
    DEFINITIONS                                                               
    "Board"        the board of Directors                                     
                                                                              
    "Company"        Tonic Industries Holdings Limited (stock code: 978), a   
    company incorporated in the Cayman Islands with limited liability, the    
    issued Shares of which are listed on the Main Board of the Stock          
    Exchange                                                                  
                                                                              
    "Companies Ordinance"        Companies Ordinance (Chapter 32 of the Laws  
    of Hong Kong)                                                             
                                                                              
    "Director(s)"        director(s) of the Company                           
                                                                              
    "EHL"        EganaGoldpfeil (Holdings) Limited (stock code: 048), a       
    company incorporated in the Cayman Islands with limited liability, the    
    issued shares of which are listed on the Main Board of the Stock          
    Exchange; EHL is beneficially interested in approximately 20.40% of the   
    issued share capital of the Company as at the date of this announcement   
                                                                              
    "Excluded Shareholders"        Shareholders whose names appear on the     
    register of members of the Company as at the close of business on the     
    Record Date and whose addresses as shown on such register are outside     
    Hong Kong where the Directors, based on legal opinions provided by legal  
    advisers, consider it necessary or expedient not to offer the Rights      
    Shares to such Shareholders on account either of legal restrictions       
    under the laws of the relevant place or the requirements of the relevant  
    regulatory body or stock exchange in that place                           
                                                                              
    "Group"        the Company and its subsidiaries                           
                                                                              
    "Hong Kong"        the Hong Kong Special Administrative Region of the     
    People's Republic of China                                                
                                                                              
    "Independent Third         independent third parties who, to the best of  
    the Director's knowledge and information                                  
      Parties"        and having made all reasonable enquiries, are not       
    connected persons (as defined under the Listing Rules) of the Company     
    and are independent of and not connected with the Company and its         
    connected persons (as defined under the Listing Rules)                    
                                                                              
    "Listing Committee"        the listing sub-committee of the Stock         
    Exchange                                                                  
                                                                              
    "Listing Rules"        the Rules Governing the Listing of Securities on   
    the Stock Exchange                                                        
                                                                              
    "Mr. Ling"        Mr. Ling Siu Man, Simon, the Managing Director and      
    Chairman of the Company, who is beneficially interested in approximately  
    50.04% of the issued share capital of the Company as at the date of this  
    announcement                                                              
                                                                              
    "Prospectus"        the prospectus to be issued by the Company as         
    required under the Companies Ordinance in relation to the Rights Issue    
                                                                              
    "Qualifying         Shareholders whose names appear on the register of    
    members of the Company as at                                              
      Shareholders"        the close of business on the Record Date other     
    than those Excluded Shareholders (if any)                                 
                                                                              
    "Record Date"        Thursday, 24 February 2005, the record date to