09:38     SHELL ELECTRIC<00081> - Announcement (5)                            

    "Gao Consideration"     the price payable by Sybond to Mr.                
    Gao for the Gao Acquisition which will be calculated                      
    with reference to the base price of US$3 per Share                        
    and will be adjusted based on the number of employees                     
    of Appeon and its subsidiaries                                            
                                                                              
    "Gao Sale Shares"       150,000 Shares representing                       
    approximately 4.10% of the issued share capital of                        
    Appeon assuming no Options are exercised                                  
                                                                              
    "Hong Kong"     the Hong Kong Special Administrative                      
    Region of the People's Republic of China                                  
                                                                              
    "Listing Rules" the Rules Governing the Listing of                        
    Securities on the Stock Exchange of Hong Kong Limited                     
                                                                              
    "Mr. Gao"       Mr. Gao Yang, a director of Appeon                        
                                                                              
    "Mr. Shi"       Mr. Zheng John Shi, a director and                        
    substantial shareholder of Appeon                                         
                                                                              
    "Options"       (i) options granted to certain director                   
    and employee of Appeon the exercise of which will                         
    involve issue of over 326,925 Shares in the unissued                      
    share capital of Appeon and (ii) options to be granted                    
    the exercise of which will involve issue of over 8,740                    
    Shares in the unissued share capital of the Company                       
                                                                              
    "Shares"        ordinary shares of US$0.01 each in the share              
    capital of Appeon                                                         
                                                                              
    "Shi Acquisition"       the proposed acquisition of the                   
    Shi Sale Shares pursuant to the Shi Agreement                             
                                                                              
    "Shi Agreement" the agreement dated 27 January 2005                       
    in relation to the sale and purchase of the Shi Sale                      
    Shares entered into between Mr. Shi and Sybond                            
                                                                              
    "Shi Consideration"     the price payable by Sybond to Mr.                
    Shi for the Shi Acquisition which will be calculated                      
    with reference to the base price of US$3 per Share                        
    and will be adjusted based on the number of employees                     
    of Appeon and its subsidiaries                                            
                                                                              
    "Shi Sale Shares"       387,500 Shares representing                       
    approximately 10.59% of the issued share capital of                       
    Appeon assuming no Options are exercised                                  
                                                                              
    "Stock Exchange"        The Stock Exchange of Hong Kong                   
    Limited                                                                   
                                                                              
    "Sybond"        Sybond Venture Limited, a company                         
    incorporated in the Cayman Islands and a wholly owned                     
    subsidiary of the Company                                                 
                                                                              
    "US$"   United States Dollars, the lawful currency of                     
    the United States of America                                              
                                                                              
    "HK$"   Hong Kong dollars                                                 
                                                                              
    "%"     per cent                                                          
                                                                              
    By Order of the Board                                                     
    Peter Lee Yip Wah                                                         
    Company Secretary                                                         
                                                                              
    Hong Kong, 31 January 2005                                                
                                                                              
    As at the date hereof, the Board comprises Mr. Billy                      
    K. YUNG, Madam YUNG HO Wun Ching, Mr. LEUNG Chun Wah                      
    and Mr. Plato Chak Sang POON as executive Directors,                      
    Mr. Simon Kwok Choi YUNG as non-executive Director and Dr. Leo Tung-Hai   
    LEE, Mr. Shiu-Kit NGAI, Mr. Peter Chung On WONG and Mr. Peter             
    LAM as independent non-executive Directors.