10:40 TONIC IND HOLD<00978> - Announcement (7) the Shares if less than 25% of the Shares are held by the public. If the Stock Exchange believes that: (i) a false market exists or may exist in the Shares; or (ii) there are too few Shares in public hands to maintain an orderly market, it will consider exercising its discretion to suspend trading in the Shares. EXPECTED TIMETABLE Last day of dealings in the Shares on a cum-rights basis Tuesday, 15 February 2005 Commencement of dealings in the Shares on an ex-rights basis Wednesday, 16 February 2005 Latest time for lodging transfer of the Shares in order to be qualified for the Rights Issue 4:00 p.m. on Thursday, 17 February 2005 Register of members closes Friday, 18 February to Thursday, 24 February 2005 (both dates inclusive) Record Date Thursday, 24 February 2005 Register of members re-opens Friday, 25 February 2005 Despatch of the Rights Issue Documents Friday, 25 February 2005 First day of dealings in nil-paid Rights Shares Tuesday, 1 March 2005 Latest time for splitting nil-paid Rights Shares 4:00 p.m. on Friday, 4 March 2005 Last day of dealings in nil-paid Rights Shares Wednesday, 9 March 2005 Latest time for acceptance of, and payment for, the Rights Shares and application for excess Rights Shares 4:00 p.m. on Monday, 14 March 2005 Latest time for termination of the Underwriting Agreement 4:00 p.m. on Wednesday, 16 March 2005 Announcement of results of the Rights Issue on newspapers Thursday, 17 March 2005 Refund cheques in respect of wholly or partially unsuccessful applications for excess Rights Shares expected to be posted on or before Thursday, 17 March 2005 Certificates for the Rights Shares to be despatched on or before Thursday, 17 March 2005 Dealings in fully-paid Rights Shares to commence on Monday, 21 March 2005 WARNING OF THE RISKS OF DEALINGS IN THE SHARES AND THE NIL-PAID RIGHTS SHARES Existing Shares will be dealt with on an ex-rights basis from Wednesday, 16 February 2005. The Rights Shares will be dealt with in their nil-paid form from Tuesday, 1 March 2005 to Wednesday, 9 March 2005 (both dates inclusive). If prior to 4:00 p.m. on Wednesday, 16 March 2005 (or such later date as Success Forever may agree with the Company in writing), Success Forever terminates the Underwriting Agreement (see sub-section headed "Termination of the Underwriting Agreement" above) or the conditions of the Rights Issue (see sub-section headed "Conditions of the Rights Issue" above) cannot be fulfilled or waived, the Rights Issue will not proceed. Any dealings in the Shares from the date of this announcement up to the date on which all the conditions of the Rights Issue are fulfilled or waived, and any dealings in the Rights Shares in their nil-paid forms between Tuesday, 1 March 2005 to Wednesday, 9 March 2005 both dates inclusive, will accordingly bear the risk that the Rights Issue may not become unconditional or may not proceed. Any Shareholders or other persons contemplating any dealings in the Shares or the Rights Shares in their nil-paid forms are recommended to consult with their own professional advisers. REASONS FOR THE RIGHTS ISSUE AND USE OF PROCEEDS The Group is principally engaged in the sale and manufacture of consumer electronic products and components and home appliances products. The Board believes that it is in the best interests of the Group and the Shareholders as a whole to enlarge the capital base of the Company