09:53     TERMBRAY IND<00093> - Announcement (2)                              

    carrying cost of investment by the Group in Cong Hua Bow Yuen) in the     
    consolidated income statement of the Group for the financial year         
    ending 31st March, 2005 against the carrying amount of the properties     
    for development as carried by Cong Hua Bow Yuen. As the extension of      
    the joint venture period of Cong Hua Bow Yuen is unlikely to be           
    successful, the negative goodwill of HK$6,601,000 arising from the        
    acquisition of interest in Cong Hua Bow Yuen in the prior year, which     
    was held in the reserve of the Group as at 30th September, 2004, will     
    be recognised in the consolidated income statement of the Group for the   
    financial year ending 31st March, 2005. The recognition of the            
    impairment loss against the properties for development and the negative   
    goodwill in the consolidated income statement of the Group for the year   
    ending 31st March, 2005 will lead to a net charge to the results of the   
    Group for the same period amounting to HK$13,977,000 and a decrease in    
    the Group's net assets value by HK$20,578,000. The Directors consider     
    that there will not be any material adverse effect on the business        
    operations of the Group, save that the opportunity to develop the piece   
    of land owned by Cong Hua Bow Yuen will be lost. As far as the            
    Directors are aware, there is no litigation against Cong Hua Bow Yuen     
    arising out of the non-extension of its joint venture period.             
                                                                              
    The Company will make a further announcement if there is any material     
    progress on the application for approval of the extension of the joint    
    venture period of Cong Hua Bow Yuen.                                      
                                                                              
    The Group recorded a profit attributable to shareholders of               
    HK$1,820,000 for the year ended 31st March, 2004 and a loss               
    attributable to shareholders of HK$4,346,000 for the six months ended     
    30th September, 2004.                                                     
                                                                              
    Shareholders of the Company and investors are advised to exercise         
    caution when dealing in the shares of the Company.                        
                                                                              
    By order of the Board                                                     
    Lee Lap                                                                   
    Chairman & CEO                                                            
                                                                              
    Hong Kong, 2nd February, 2005                                             
                                                                              
    As at the date hereof, the Board comprises three executive directors,     
    namely Mr. LEE Lap, Mdm. LEUNG Lai Ping and Mr. WONG Shiu Kee; one        
    non-executive director, namely Mr. LEE Ka Sze, Carmelo and three          
    independent non-executive directors, namely Dr. LEE Tung Hai, Leo, Mr.    
    CHAN Siu Kang and Mr. LO Yiu Hee.                                         
                                                                              
    *  for the chinese name, please refer to the press announcement today.