09:28     NIPPON ASIA INV<00603>-Announcement&Resumption of Trading(14        

    rights to take appropriate action against the Company and its             
    Directors.                                                                
                                                                              
    ADJUSTMENTS TO CONVERTIBLE NOTES AND SHARE OPTIONS                        
                                                                              
    As at the date of this announcement, 384,800,000 Shares are               
    subject to the outstanding Share Options. Adjustments will be             
    made to the exercise prices of the Share Options in accordance            
    with the terms of the share option scheme as a result of the              
    Capital Reorganisation becoming effective as follows:                     
                                                                              
                            Number of               Adjusted number           
                            Shares          of New Shares   Adjusted          
                            subject to the          subject to the  exercise  
    Category of             Exercise price  outstanding                       
    outstanding                                                               
            price per                                                         
    participant     Date of grant   per Share       Share Options             
            Exercise period Share Options   New Share                         
                    HK$                             HK$                       
                                                                              
    (i)     Employees       06.01.2003      0.0604  24,800,000      01.07.2003
    to                                                                        
            2,480,000       0.604                                             
                                    30.06.2005                                
                                                                              
    (ii)    Consultants     28.04.2004      0.0250  360,000,000     29.04.2004
    to      36,000,000      0.250                                             
                                    11.05.2005                                
                                                                              
    As at the date of this announcement, an aggregate of 640,000,000          
    Shares are subject to the Outstanding CN at the conversion price          
    of HK$0.025 each. Upon the Capital Reorganisation becoming                
    effective, the number of New Shares subject to the Outstanding            
    CN will be 64,000,000 New Shares at the adjusted conversion price         
    of HK$0.25 each.                                                          
                                                                              
    INFORMATION ON THE GROUP                                                  
                                                                              
    The principal activity of the Company is investment holding and           
    the Group is principally engaged in investments in Internet,              
    information technology, investment in natural gas business,               
    investment in securities, and manufacturing and trading of                
    silicone rubber products.                                                 
                                                                              
    EXPECTED TIMETABLE                                                        
                                                                              
    2005                                                                      
                                                                              
    Despatch of circular    on or before Monday, 7 March                      
                                                                              
    Latest time for lodging the form of proxy for the SGM                     
            10:00 a.m. on Tuesday, 29 March                                   
                                                                              
    Date of SGM     10:00 a.m. on Thursday, 31 March                          
                                                                              
    Effective date of the Capital Reorganisation and Share                    
    Consolidation   9:00 a.m. on Friday, 1 April                              
                                                                              
    Existing counter for trading in the Shares in board lots                  
      of 2,000 Shares temporarily closes    9:30 a.m. on Friday, 1            
    April                                                                     
                                                                              
    Temporary counter for trading in the New Shares in board lots             
    of 200 New Shares                                                         
      (in the form of existing share certificates) opens    9:30 a.m.         
    on Friday, 1 April                                                        
                                                                              
    Existing counter for trading in the New Shares in board lots              
    of 20,000 New Shares                                                      
      (in the form of new share certificates) re-opens      9:30 a.m.         
    on Monday, 18 April                                                       
                                                                              
    Parallel trading of the New Shares (in the form of existing