09:07     START TECH<00706> - Announcement (3)                                

    Software Company as at 31 December 2003 (prepared in                      
    accordance with Hong Kong GAAP) are RMB17,698,000 and                     
    RMB39,091,000 respectively.                                               
                                                                              
    Reasons for the Acquisition                                               
    The Group is principally engaged in the provision of                      
    software development and systems integration                              
    services.                                                                 
                                                                              
    Upon the completion of the Equity Transfer Agreement,                     
    Software Company will become a wholly owned                               
    subsidiary of the Group and the operation and                             
    management of Software Company will be wholly                             
    controlled by the Group. The Directors believe that                       
    the management and administration efficiency of                           
    Software Company could be enhanced and the reaction                       
    time of the management of Software Company to the                         
    market changes could also be shortened. Accordingly,                      
    the Directors are of the view that the Group's                            
    profitability could be enhanced in a long run.                            
                                                                              
    CONNECTED AND DISCLOSEABLE TRANSACTION                                    
    Star Gain is a substantial shareholder of Software                        
    Company which is a non-wholly owned subsidiary of the                     
    Company. Accordingly, Star Gain is a connected person                     
    of the Company. Since each of the profits ratio and                       
    the consideration ratio is more than 2.5% but less                        
    than 25% (and the other applicable ratios are less                        
    than 2.5%) and the total consideration is less than                       
    HK$10,000,000, under Rule 14A.32 of the Listing Rules,                    
    the Acquisition is only subject to reporting and                          
    announcement requirements and is exempt from                              
    independent shareholders' approval.                                       
                                                                              
    Since the consideration ratio is more than 5% but less                    
    than 25% while the other applicable ratios are less                       
    than 5%, the Acquisition also constitutes a                               
    discloseable transaction for the Company. A circular                      
    containing further details of the Acquisition will                        
    be despatched to the shareholders of the Company as                       
    soon as possible.                                                         
                                                                              
    DEFINITIONS                                                               
    In this announcement, the following expressions shall,                    
    unless the context requires otherwise, have the                           
    following meanings:                                                       
                                                                              
    "Acquisition"   the acquisition of 12.2% interests in                     
    Software Company pursuant to the Equity Transfer                          
    Agreement                                                                 
                                                                              
    "BVI"   the British Virgin Islands                                        
                                                                              
    "Company"       Start Technology Company Limited, a                       
    company incorporated in Bermuda with limited                              
    liability, the shares of which are listed on the Main                     
    Board of the Stock Exchange                                               
                                                                              
    "Directors"     the directors of the Company                              
                                                                              
    "Equity Transfer        the equity transfer agreement dated               
    17 February 2005 and entered into between Star Gain                       
    and Stepping Stones                                                       
      Agreement"    in relation to the Acquisition                            
                                                                              
    "GAAP"  generally accepted accounting principles                          
                                                                              
    "Group" the Company and its subsidiaries                                  
                                                                              
    "HK$"   Hong Kong dollars, the lawful currency of Hong                    
    Kong                                                                      
                                                                              
    "Hong Kong"     the Hong Kong Special Administrative                      
    Region of the PRC