09:17     LEADERSHIP PGL<08010>-Announcement&Resumption of Trading(1)         

    The Stock Exchange of Hong Kong Limited takes no                          
    responsibility for the contents of this announcement, makes no            
    representation as to its accuracy or completeness and                     
    expressly disclaims any liability whatsoever for any loss                 
    howsoever arising from or in reliance upon the whole or any               
    part of the contents of this announcement.                                
                                                                              
    This announcement appears for information purposes only and               
    does not constitute an invitation or offer to acquire,                    
    purchase or subscribe for securities.                                     
                                                                              
    SMI Publishing Group Limited                                              
    (formerly known as Leadership Publishing Group Limited)                   
    (Incorporated in the Cayman Islands with limited liability)               
    (Stock Code: 8010)                                                        
                                                                              
    WRIT AGAINST A WHOLLY-OWNED SUBSIDIARY OF THE COMPANY,                    
                                                                              
    CONNECTED TRANSACTION                                                     
    PROPOSED ISSUE OF HK$50 MILLION CONVERTIBLE NOTE                          
                                                                              
    AND                                                                       
                                                                              
    RESUMPTION OF TRADING                                                     
                                                                              
    Financial adviser to the Company                                          
                                                                              
    KINGSTON CORPORATE FINANCE LIMITED                                        
                                                                              
    WRIT AGAINST A WHOLLY-OWNED SUBSIDIARY OF THE COMPANY                     
    The Board wishes to announce that Sing Pao received a Writ of             
    Summons issued by the Plaintiff on 14 December 2004, regarding            
    the rental of the Premises together with the miscellaneous                
    fees in the sum of approximately HK$2,305,098 for the tenancy             
    period from September 2004 to December 2004. The Group is                 
    seeking to resolve the Claim in an amicable way with the                  
    Plaintiff.                                                                
                                                                              
    PROPOSED ISSUE OF HK$50 MILLION CONVERTIBLE NOTE                          
    The Board further wishes to announce that on 3 February 2005,             
    the Company entered into the Subscription Agreement with the              
    Subscriber, pursuant to which the Company has agreed to issue             
    and the Subscriber has agreed to subscribe for the Convertible            
    Note in the principal amount of HK$50 million. The Convertible            
    Note bears interest at the rate of 1.5% per annum on the                  
    principal amount of the Convertible Note. The Subscriber                  
    (beneficially and wholly owned by Mr. QIN Hui) is a                       
    substantial Shareholder currently holding approximately 26.36%            
    shareholding interest in the Company. The Subscriber currently            
    holds approximately 15.99% direct interest in the Company and,            
    through its approximately 48.79% interest in SMI, holds                   
    approximately 10.37% indirect shareholding interest in the                
    Company. By virtue of the SFO, the Subscriber and Mr. QIN Hui             
    are deemed to be interested in all the Shares in which SMI is             
    interested.                                                               
                                                                              
    The Convertible Note is convertible into the Conversion Shares            
    at the Conversion Price of HK$0.05 per Conversion Share                   
    (subject to adjustment) which represents a premium of                     
    approximately 66.67% to the closing price of HK$0.03 per Share            
    as quoted on the Stock Exchange on the Latest Trading Date, a             
    premium of approximately 40.45% to the average closing price              
    of approximately HK$0.0356 per Share quoted on the Stock                  
    Exchange for the five consecutive trading days up to and                  
    including the Latest Trading Date and a premium of                        
    approximately 42.45% to the average closing price of                      
    approximately HK$0.0351 per Share for the ten consecutive                 
    trading days up to and including the Latest Trading Date.                 
    Assuming full conversion of the Convertible Note at the                   
    Conversion Price of HK$0.05 per Conversion Share (subject to              
    adjustment) and no further issue of Shares or repurchase of               
    Shares by the Company after the date of this announcement, a              
    total of 1,000,000,000 Conversion Shares, representing                    
    approximately 100.84% of the Company's existing issued share              
    capital as at the date of this announcement and approximately             
    50.21% of the Company's issued share capital as enlarged by               
    the issue and allotment of such Convertible Shares, will be               
    issued.