09:36     EASYKNIT INT'L<01218> - Announcement & Resumption (1)               

    The Stock Exchange of Hong Kong Limited takes no responsibility for       
    the contents of this announcement, makes no representation as to its      
    accuracy or completeness and expressly disclaims any liabilities          
    whatsoever for any loss howsoever arising from or in reliance upon        
    the whole or any part of the contents of this announcement.               
                                                                              
                                                                              
                                                                              
    EASYKNIT INTERNATIONAL HOLDINGS LIMITED                                   
    *                                                                         
    (Incorporated in Bermuda with limited liability)                          
    Stock Code: 1218                                                          
                                                                              
    VERY SUBSTANTIAL DISPOSAL                                                 
    DISPOSAL OF COMMERCIAL PROPERTIES                                         
    and                                                                       
    RESUMPTION OF TRADING                                                     
                                                                              
                                                                              
    On 17 February 2005, the Purchaser and the Vendors entered into           
    two provisional agreements, one for the disposal of Property 1 and        
    one for the disposal of Property 2, at a consideration of                 
    HK$220,000,000 in aggregate.                                              
                                                                              
    The Disposal constitutes a very substantial disposal for the Company      
    under the Listing Rules. Therefore it is subject to the Shareholders'     
    approval under Chapter 14 of the Listing Rules. A circular                
    containing, among other things, details of the Disposal, together         
    with a notice convening the SGM will be despatched to the                 
    Shareholders as soon as practicable.                                      
                                                                              
    At the request of the Company, trading in the Shares on the Stock         
    Exchange was suspended from 9:30 a.m. on 18 February 2005 and on the      
    SGX-ST from 9:00 a.m. on the same date, pending issue of this             
    announcement. Application has been made by the Company to the Stock       
    Exchange and the SGX-ST for the resumption of trading in the Shares       
    on the Stock Exchange and the SGX-ST from 9:30 a.m. and 9:00 a.m.         
    respectively on 23 February 2005.                                         
                                                                              
                                                                              
    THE DISPOSAL                                                              
    Property 1                                                                
    Contract date: 17 February 2005                                           
    Parties:                                                                  
    Vendor 1:                      Victor Investment Limited, a               
                                   company incorporated in Hong               
                                   Kong with limited liability                
                                   and a wholly-owned subsidiary              
                                   of the Company.                            
    Purchaser:                     Wong Ching Man, or her                     
                                   nominee. To the best of the                
                                   Directors' knowledge,                      
                                   information and belief,                    
                                   having made all reasonable                 
                                   enquiries, Wong Ching Man is               
                                   an Independent Third                       
                                   Party.                                     
    Agent:                         Centaline Property Agency                  
                                   Limited whose registered                   
                                   office is situated at 5th                  
                                   Floor, Tower 1, New World                  
                                   Tower, 18 Queen's Road                     
                                   Central, Hong Kong.                        
    Property 1:                    Shop 19 on Ground Floor, The               
                                   Annex Land Building of                     
                                   Excelsior Plaza, Nos. 24-26                
                                   East Point Road, Causeway                  
                                   Bay, Hong Kong.                            
    Summary:                       This is a provisional                      
                                   agreement for the disposal of              
                                   Property 1 at a consideration              
                                   of HK$70,000,000. Vendor 1 is              
                                   selling Property 1 as its                  
                                   owner. The Purchaser and                   
                                   Vendor 1 will enter into a                 
                                   formal agreement in relation               
                                   to the sale and purchase of                
                                   Property 1 on substantially                
                                   the same terms as the                      
                                   Provisional Agreement 1 on or              
                                   before 3 March 2005.                       
                                   The consideration was reached              
                                   after arm's length                         
                                   negotiation between the                    
                                   parties with reference to the              
                                   prevailing market rates, i.e.              
                                   reported sales prices of                   
                                   comparable shop premises in                
                                   Causeway Bay in recent                     
                                   transactions.                              
                                   An initial deposit of                      
                                   HK$2,000,000 was paid in cash              
                                   by the Purchaser on 17                     
                                   February 2005. Under the