09:57     QUALITY HEALTH<00593> - Announcement (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.                                                             
                                                                              
                                                                              
    Quality HealthCare Asia Limited                                           
    *                                                                         
    (Incorporated in Bermuda with limited liability)                          
    (Stock Code : 593)                                                        
    (website: www.qualityhealthcareasia.com)                                  
                                                                              
    Continuing Connected Transactions                                         
                                                                              
    The Company entered into the Continuing Connected Transaction             
    Agreements with the SHK Subsidiaries on 7 February 2005.                  
                                                                              
    As each of the relevant percentage ratios (other than the profit          
    ratio) set out in Rule 14.07 of the Listing Rules in respect              
    of the fees payable under each of the Continuing Connected                
    Transaction Agreements is, on an annual basis, less than 2.5%             
    or equal to or more than 2.5% but less than 25% and the annual            
    consideration is less than HK$10,000,000, each of the Continuing          
    Connected Transactions is classified as a continuing connected            
    transaction under Rule 14A.34 of the Listing Rules and is exempt          
    from independent shareholders' approval requirements under the            
    Listing Rules.                                                            
                                                                              
    Details of the Continuing Connected Transactions will be                  
    included in the Company's next published annual report and                
    accounts in accordance with Rules 14A.45 and 14A.46 of the                
    Listing Rules.                                                            
                                                                              
    Reference is made to the announcement of the Company dated 2              
    February 2004 (the "2004 Announcement") in relation to the                
    Company entering into the respective agreements with the SHK              
    Subsidiaries in respect of the latter providing insurance                 
    brokerage services, corporate secretarial services and internal           
    audit and compliance consultancy services to the Group for a              
    term of one year. Details of the material terms of these                  
    agreements have been set out in the 2004 Announcement. As these           
    transactions were entered into prior to 31 March 2004, these              
    transactions were subject to the Listing Rules in force prior             
    to 31 March 2004.                                                         
                                                                              
    It has been respectively agreed between the Company and the SHK           
    Subsidiaries that the provision of such services would continue           
    after the expiry of the existing agreements and in this respect,          
    the Company has on 7 February 2005 entered into the Continuing            
    Connected Transaction Agreements with the SHK Subsidiaries in             
    respect of the latter respectively providing insurance brokerage          
    services, corporate secretarial services and internal audit and           
    compliance consultancy services to the Group.                             
                                                                              
    Details of the Continuing Connected Transactions are set out              
    below.                                                                    
                                                                              
    The Insurance Brokerage Services Agreement                                
                                                                              
    Date:   7 February 2005                                                   
                                                                              
    Effective Period:       One year commencing from 1 February 2005          
                                                                              
    Party A:        The Company                                               
                                                                              
    Party B:        SHK Insurance. The principal business activity of SHK     
    Insurance is the provision of insurance brokerage