09:17     HON PO GROUP<00228> - Announcement & Resumption (7)                 

    Parallel trading ends   4:00 p.m. 11 May 2005                             
                                                                              
    Last day of operation of odd lot trading facility   11 May 2005           
                                                                              
    Latest time for free exchange of share certificates   14 May 2005         
                                                                              
    (4)   PROPOSED REFRESHMENT Of GENERAL MANDATE                             
                                                                              
    At the date of this announcement, the existing general mandate has been   
    utilized and the board of Directors proposes to refresh the general       
    mandate. The refreshment of the general mandate is subject to the         
    Independent Shareholders' approval by way of poll at the EGM. As at the   
    date of this announcement, Hon Po Investment Limited is beneficially      
    interested in approximately 50.26% of the issued share capital of the     
    Company therefore it is required to abstain from voting to the            
    refreshment of the general mandate at the EGM.                            
                                                                              
    General                                                                   
                                                                              
    The principal activities of the Company is investment holding. The        
    principal activities of the Company's subsidiaries involve the operation  
     of a chain of Chinese restaurants and food manufacturing in Hong Kong.   
                                                                              
    The Directors consider that the terms of the Placing Agreement are fair   
    and reasonable and in the interests of the Company and the Shareholders   
    as a whole. The issue of Conversion Shares falling to be issued upon      
    exercise of the conversion rights attached to the Convertible Notes and   
    the refreshment of general mandate are subject to the Shareholders' and   
    Independent Shareholders' approval respectively at the EGM.               
                                                                              
    An independent board committee will be established to make                
    recommendations to the Shareholders and an independent financial adviser  
     will be appointed to advise the independent board committee and the      
    Shareholders in relation to the proposed refreshment of general mandate.  
                                                                              
                                                                              
    A circular containing further details of the Placing, Share               
    Consolidation, the change of board lot size and the refreshment of        
    general mandate, together with notice of EGM will be dispatched to the    
    Shareholders as soon as practicable.                                      
                                                                              
    (5)   RESUMPTION OF TRADING                                               
                                                                              
    At the request of the Company, trading in Shares on the Stock Exchange    
    was suspended from 9:30 a.m. on 8 February 2005 pending the release of    
    this announcement. Application has been made by the Company to the Stock  
     Exchange for the resumption of trading in Shares on the Stock Exchange   
    with effect from 9:30 a.m. on 22 February 2005.                           
                                                                              
    TERMS AND DEFINITION                                                      
                                                                              
    "associate(s)"   has the meaning ascribed to it in the Listing Rules      
                                                                              
    "Board"   the board of directors of the Company                           
                                                                              
    "Company"   Hon Po Group (Lobster King) Limited, a company incorporated   
    in the Cayman Islands with limited liability and the Shares of which are  
     listed on the Stock Exchange                                             
                                                                              
    "Consolidated Share(s)"   Ordinary shares of HK$0.05 each in the share    
    capital of the Company upon the Share Consolidation being effective.      
                                                                              
    "Conversion Price"   HK$0.02 per Share (which is subject to adjustment    
    including but not limited to the Share Consolidation) or adjusted to      
    HK$0.10 per Consolidated Share upon the Share Consolidation being         
    effective.                                                                
                                                                              
    "Conversion Share(s)"   the new Shares to be issued by the Company upon   
    the exercise of the conversion rights attaching to the Convertible Notes  
     by the holders thereof                                                   
                                                                              
    "Convertible Note(s)"   the convertible notes to be issued by the         
    Company in the aggregate principal amount of HK$40,000,000 in maximum     
                                                                              
    "Director(s)"   director(s) of the Company                                
                                                                              
    "EGM"   an extraordinary general meeting of the Company to be convened    
    to approve, amongst other things, the issue of the Convertible Notes,     
    Share Consolidation, change of the board lot size and the refreshment of  
     general mandate or any adjournment thereof                               
                                                                              
    "Group"   The Company and its subsidiaries                                
                                                                              
    "Hong Kong"   Hong Kong Special Administrative Region of the People's