09:16     HON PO GROUP<00228> - Announcement & Resumption (6)                 

    As at the date of this announcement, Shares are traded in board lots of   
    10,000. It is proposed that the Consolidated Shares will be traded in     
    board lots of 20,000.                                                     
                                                                              
    Based on the closing price of HK$0.066 per Share as at the Last Trading   
    Date, the value of each board lot of 20,000 Consolidated Shares,          
    assuming the Share Consolidation had already been effective, would be     
    HK$6,600.                                                                 
                                                                              
    Reasons for the Share Consolidation and change of board lot size          
                                                                              
    The Share of the Company was currently traded at less than HK$0.10, in    
    order to bring the trading price in line with rule 13.64 of the Listing   
    Rules, by effecting the proposed Share Consolidation it is expected to    
    bring about a corresponding upward adjustment in the trading price of     
    the Consolidated Shares on the Stock Exchange. Along with the change of   
    board lot size, it will also reduce the overall transaction costs for     
    dealings in the Consolidated Shares. Accordingly, the Board is of the     
    view that the Share Consolidation and the change of board lot size are    
    beneficial to the Company and the Shareholders as a whole.                
                                                                              
    Other than the expenses to be incurred by the Company in relation to the  
     Share Consolidation and change of board lot size, the implementation     
    thereof will not, by itself, affect the underlying assets, business       
    operations, management or financial position of the Group or the          
    interests of the Shareholders as a whole.                                 
                                                                              
    Exchange of certificates for Consolidated Shares                          
                                                                              
    Subject to the Share Consolidation becoming effective, which is           
    currently expected to be on 4 April 2005, being the business date         
    immediately after the date of the EGM, Shareholders may on or after 4     
    April 2005 and until 14 May 2005 (both days inclusive), submit their      
    share certificates for Shares to the Registrar for exchanging for share   
    certificate for the Consolidated Shares at the expense of the Company.    
    After the prescribed time for free exchange of share certificates, a fee  
     of HK$2.50 per old certificate submitted or new certificate issued       
    whichever is the higher (or such higher amount as may from time to time   
    be allowed by the Stock Exchange) will be payable by the Shareholders to  
     the Registrar for exchange of share certificates.                        
                                                                              
    With effect from 12 May 2005, trading will only be in Consolidated        
    Shares in board lots of 20,000. Share certificates for the Shares will    
    be ceased to be valid for trading and settlement purposes, but will       
    remain valid and effective as documents of entitlement.                   
                                                                              
    Expected timetable                                                        
                                                                              
    The expected timetable for the Share Consolidation and change of board    
    lot size is as follows :                                                  
                                                                              
    Despatch of the circular   10 March 2005                                  
                                                                              
    Publication of the notice of EGM   10 March 2005                          
                                                                              
    Latest time for lodging the form of proxy for the EGM   4:00 p.m. 30      
    March 2005                                                                
                                                                              
    EGM   4:00 p.m. 1 April 2005                                              
                                                                              
    Effective date of the Share Consolidation   4 April 2005                  
                                                                              
    Original counter for trading in Shares in board lots of 10,000 Shares     
    temporarily closes    9:30 a.m. 4 April 2005                              
                                                                              
    Temporary counter for trading in Consolidated Shares                      
      in board lots of 2,000 Consolidated Shares opens (in the form of        
    existing share certificates)   9:30 a.m. 4 April 2005                     
                                                                              
    First day for free exchange of existing share certificates   4 April      
    2005                                                                      
                                                                              
    Original counter for trading in Consolidated Shares                       
      in board lots of 20,000 Consolidated Shares re-opens (in the form of    
    new share certificates)   9:30 a.m. 19 April 2005                         
                                                                              
    Parallel trading in Consolidated Shares commences   9:30 a.m. 19 April    
    2005                                                                      
                                                                              
    First day of operation of odd lot trading facility   19 April 2005        
                                                                              
    Temporary counter for trading in Consolidated Shares                      
      in board lots of 2,000 Consolidated Shares closes (in the form of       
    existing share certificates)   4:00 p.m. 11 May 2005