09:36     E2-CAPITAL<00378> - Announcement (3)                                

    After the completion of 1st Disposal, Westcomb has                        
    ceased to be an associated company of the Company.                        
    The Sale Shares has been treated as an investment and                     
    stated fairly at its market value according to the                        
    accounting standards issued by the Hong Kong                              
    Institute of Certified Public Accountants. As at 31                       
    December, 2004, the fair value of the Sale Shares as                      
    recorded in the Company's audited financial                               
    statements was HK$31,069,000.                                             
                                                                              
    REASONS FOR THE 2ND DISPOSAL                                              
    The principal activities of the Group include                             
    investment holding, property holding and development,                     
    trading of dyestuffs, venture capital, provisions of                      
    online marketing and roadshow services and provisions                     
    of corporate finance services.                                            
                                                                              
    The reason for the disposal of the Sale Shares is to                      
    realise the Company's investment in Westcomb. Based                       
    on the unaudited net asset value of Westcomb of                           
    approximately S$19,501,847 (equivalent to                                 
    approximately HK$92,633,773) as at 30 June 2004, the                      
    gain expected to accrue to the Company (before                            
    expenses) as a result of the disposal of the Sale                         
    Shares will be approximately S$4,885,700 (equivalent                      
    to approximately HK$23,207,000) of which                                  
    HK$20,877,000 has been marked to market and was                           
    included as an unrealized gain in the results of the                      
    Company for the year ended 31 December 2004. After                        
    the completion of the 2nd Disposal, the realized gain                     
    from the Sale Shares of approximately HK$2,330,000                        
    will be accrued to the Company's accounts in the year                     
    2005. The proceeds from the disposal of the Sale                          
    Shares will be applied as general working capital of                      
    the Group.                                                                
                                                                              
    GENERAL                                                                   
    As the total consideration for the 1st Disposal and                       
    the 2nd Disposal exceeds 5% (but less than 25%) of                        
    the total market capitalisation of the Company based                      
    on the average closing price of the Company's shares                      
    as stated in the Stock Exchange's daily quotations                        
    sheets for the five business days immediately                             
    preceding the date of disposal, the 1st Disposal and                      
    the 2nd Disposal when aggregated constitute a                             
    discloseable transaction of the Company under Chapter                     
    14 of the Listing Rules.                                                  
                                                                              
    The Directors consider that the terms of the 2nd                          
    Disposal are normal commercial terms and are fair and                     
    reasonable and in the interests of the Group and the                      
    Shareholders as a whole.                                                  
                                                                              
    A circular setting out details of the 2nd Disposal                        
    will be despatched to the Shareholders as soon as                         
    practicable, and in any event within 21 days after                        
    the publication of this announcement.                                     
                                                                              
    DEFINITIONS                                                               
    "1st Disposal"  the disposal of 16,352,324 ordinary                       
    shares of S$0.02 each in the capital of Westcomb by                       
    Goodwill to Bigfield, particulars of which are set                        
    out in the Company's announcement dated 20 August 2004                    
                                                                              
    "2nd Disposal"  the disposal of the Sale Shares by                        
    Goodwill through its broker to an independent third                       
    party                                                                     
                                                                              
    "Bigfield"      Bigfield Investments Limited, a company                   
    incorporated in the British Virgin Islands and to the                     
    best of directors knowledge, information and belief                       
    and having made all reasonable enquiry, they are not                      
    connected persons of the Company.