09:24     NIPPON ASIA INV<00603>-Announcement&Resumption of Trading(4)        

    As stated in the financial statements of the Company for the              
    year ended 31 July 2004, the Company had accumulated losses of            
    HK$1,116,902,000 as at 31 July 2004. The Capital Reduction will           
    allow the Company to eliminate part of the accumulated losses             
    and as a result, will enable the Company to declare dividends             
    to the Shareholders at an earlier opportunity than by generating          
    profits to offset such losses. Hence, the Directors believe that          
    the Capital Reorganisation is beneficial to the Company and the           
    Shareholders as a whole. The Company does not have any present            
    intention to make any distribution of dividends.                          
                                                                              
    Implementation of the Capital Reorganisation will not of itself           
    have any impact on the Group's underlying assets, business                
    operations, management or financial position, other than the              
    expenses incurred in relation to the exercise.                            
                                                                              
    CHANGE IN BOARD LOT SIZE                                                  
                                                                              
    The Directors also announce that upon completion of the Capital           
    Reorganisation, the board lot size for trading in shares will             
    be changed from 2,000 Shares to 20,000 New Shares.                        
                                                                              
    Trading Arrangement                                                       
                                                                              
    (i)     From 9:30 a.m. on 1 April 2005, the original counter for          
    trading in the existing Shares in board lots of 2,000 existing            
    Shares will be temporarily removed. A temporary counter for               
    trading in the New Shares in the board lots of 200 New Shares             
    will be established and certificates for every 10 existing Shares         
    will be deemed to represent one New Share. Only existing                  
    certificate(s) for existing Shares may be traded at this counter.         
                                                                              
    (ii)    With effect from 9:30 a.m. on 18 April 2005, the original         
    counter will be re-opened for trading in New Shares in board              
    lots of 20,000 New Shares. Only new certificate(s) for New Shares         
    may be traded at this counter.                                            
                                                                              
    (iii)   During the period from 18 April 2005 to 10 May 2005 (both         
    dates inclusive), there will be parallel trading at the above             
    counters.                                                                 
                                                                              
    (iv)    The temporary counter for trading in the certificates of          
    the existing Shares in board lots of 200 New Shares will be               
    removed after the close of trading on 10 May 2005 and thereafter,         
    trading will be in board lots of 20,000 New Shares only and               
    existing certificates for existing Shares will cease to be                
    marketable. However, such certificate will remain effective as            
    documents of legal title to the New Shares on the basis of 10             
    existing Shares for one New Share and may be lodged with the              
    share registrar of the Company for an exchange for a new share            
    certificate(s) (see the paragraph below "Free Exchange of Share           
    Certificates").                                                           
                                                                              
    The reason for the change in board lot size is to increase the            
    value of each board lot of Shares and reduce trading and                  
    registration costs incurred by the Shareholders and investors             
    of the Company. The Directors are of the opinion that the change          
    in board lot size is in the best interest of the Company and              
    the Shareholders. The change in board lot size will not result            
    in any change in the relative rights of the Shareholders.                 
                                                                              
    Free Exchange of Share Certificates                                       
                                                                              
    Upon the Capital Reorganisation becoming effective,                       
    Shareholders may submit certificates for the Shares to the branch         
    share registrar of the Company in Hong Kong, Computershare Hong           
    Kong Investor Services Limited of