10:37     JACKLEY HOLDING<00353> - Announcement & Resumption (7)              

            83,077,500      59.77   124,616,250     59.77   83,077,500        
    39.85                                                                     
            --------------------------------------------------------------    
    Total   1,390,000,000   100.00  139,000,000     100.00  208,500,000       
            100.00  208,500,000     100.00                                    
            ==============================================================    
                                                                              
    Notes:                                                                    
                                                                              
    1.      Prime Orient is a company incorporated in the British Virgin      
    Islands and beneficially wholly owned by Mr. Lam Shu Chung, a             
    Director.                                                                 
                                                                              
    2.      Save for the holding of the 47,500,000 Shares (or 4,750,000       
    New Shares upon completion of the Capital Reorganisation) by              
    Mr. Choi, Mr. Choi and his associates are not connected persons           
    (as defined in the Listing Rules) of the Company and are                  
    independent of and not connected with the Company or any                  
    connected person (as defined in the Listing Rules) of the Company.        
                                                                              
    Reasons for the Open Offer and use of proceeds:                           
                                                                              
    The Group is principally engaged in the design, manufacture and           
    sale of a wide range of carpets under its own brand name and              
    the trading of carpets of various brands names.                           
                                                                              
    In view of the financial needs of the Company for repaying certain        
    outstanding indebtedness due to certain bankers and independent           
    third parties, the Board considers that it is a suitable time             
    to raise funds for the above purposes through the Open Offer,             
    which is an appropriate means through which the Group can raise           
    funds with no dilutive effects on the shareholding of the                 
    Shareholders.                                                             
                                                                              
    The estimated net proceeds from the Open Offer will be                    
    approximately HK$13 million, of which approximately HK$9.1                
    million will be applied to the repayment of outstanding                   
    indebtedness and the remaining balance of approximately HK$3.9            
    million will be used as general working capital of the Group.             
    The Board considers that, compared with debt financing, the Open          
    Offer is a better way to raise funds without incurring any                
    interest expenses to the Company.                                         
                                                                              
    The estimated expenses of the Open Offer is about HK$0.9 million,         
    which will be borne by the Company. The estimated expenses will           
    include the underwriting commission, professional fees and all            
    other expenses relating to the Open Offer.                                
                                                                              
    Fund raising activities of the Company during the 12 months ended         
    the date of this announcement:                                            
                                                                              
    There has not been any rights issue or open offer of Shares or            
    other fund raising activities of the Company for the past 12              
    months ended the date of this announcement save for i) the                
    proposed open offer of the Company announced by the Company on            
    17 November 2004 but which was not approved by the Shareholders           
    at the extraordinary general meeting of the Company on 31                 
    December 2004; and ii) the subscription of 200,000,000 Shares             
    by an independent third party as set out in the announcement              
    of the Company dated 8 March 2004 but which was subsequently              
    terminated on 11 May 2004 as detailed in the announcement of              
    the Company dated 5 July 2004.                                            
                                                                              
    EXPECTED TIMETABLE                                                        
                                                                              
    Reference is made to the Company's announcement and circular              
    dated 17 November 2004 and 6 December 2004, respectively,                 
    regarding the timetable of the Capital Reorganisation. The                
    revised timetable for the Capital