09:25     NIPPON ASIA INV<00603>-Announcement&Resumption of Trading(7)        

    Interest:       The Convertible Notes bear an annual interest of 1%,      
    which will be payable on the Maturity Date.                               
                                                                              
    Maturity Date:  The maturity of the Convertible Notes will be             
    the date falling on the last day of a period of 365 days from             
    and including the Issue Date. Any outstanding principal amount            
    of the Convertible Notes together with interest accrued thereon           
    will be repaid by the Company on maturity.                                
                                                                              
    Conversion provisions:  The Convertible Notes are convertible             
    in whole or in part representing JPY50,000,000 (for the GC                
    Convertible Note) and HK$100,000 (for the Underwritten                    
    Convertible Notes) an integral multiple thereof at any time after         
    the Issue Date at the Initial Conversion Price, subject to                
    adjustment. The exchange rate for translation of JPY to HK$ is            
    fixed at JPY1 to HK$0.075.                                                
                                                                              
    Transferability:        The Convertible Notes may not be assigned or      
    transferred to a connected person (as defined in the Listing              
    Rules) of the Company.                                                    
                                                                              
    Voting rights:  The Convertible Notes do not confer any voting            
    rights at general meetings of the Company on the holders.                 
                                                                              
    Redemption:     The Company shall, at any time before the Maturity        
    Date, have the option to redeem the Convertible Notes in whole            
    or in part at its principal amount outstanding together with              
    accrued interest thereon.                                                 
                                                                              
    Listing:        No application will be made for the listing of the        
    Convertible Notes on the Stock Exchange or any other stock                
    exchange.                                                                 
                                                                              
    Application will be made by the Company for the listing of and            
    permission to deal in the New Shares to be issued pursuant to             
    the exercise of the conversion rights attaching to the                    
    Convertible Notes.                                                        
                                                                              
    Based on the Initial Conversion Price:                                    
                                                                              
    (1)     the maximum number of the Conversion Shares which may be          
    issued upon full conversion of the GC Convertible Note is                 
    120,833,333 New Shares, representing:-                                    
                                                                              
    (i)     approximately 7.39% of the existing issued share capital of       
    the Company comprising 1,634,676,213 New Shares (taking into              
    account of the Capital Reorganisation becoming effective);                
                                                                              
    (ii)    approximately 6.88% of the Company's issued share capital         
    comprising 1,755,509,546 New Shares (taking into account of the           
    Capital Reorganisation becoming effective) as enlarged by the             
    full conversion of the GC Convertible Note; and                           
                                                                              
    (iii)   approximately 6.11% of the Company's issued share capital         
    comprising 1,977,731,768 New Shares (taking into account of the           
    Capital Reorganisation becoming effective) as enlarged by the             
    full conversion of the Convertible Notes,                                 
                                                                              
    (2)     the maximum number of the Conversion Shares which may be          
    issued upon full conversion of the Underwritten Convertible               
    Notes is 222,222,222 New Shares, representing:-                           
                                                                              
    (i)     approximately 13.59% of the existing issued share capital         
    of the Company comprising 1,634,676,213 New Shares (taking into           
    account of the Capital Reorganisation becoming effective);                
                                                                              
    (ii)    approximately 11.97% of the Company's issued share                
                                                                              
    At the request of Easyknit International Holdings Limited (the            
    "Company"), trading in its shares will be suspended with effect from      
    9:30 a.m. today (18/2/2005) pending issue of an announcement regarding a  
    very substantial disposal of the Company.