09:37     EASYKNIT INT'L<01218> - Announcement & Resumption (3)               

                                   Vendor 2 will enter into a                 
                                   formal agreement in relation               
                                   to the sale and purchase of                
                                   Property 2 on substantially                
                                   the same terms as the                      
                                   Provisional Agreement 2 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$4,000,000 was paid in cash              
                                   by the Purchaser on 17                     
                                   February 2005. Under the                   
                                   Provisional Agreement 2, a                 
                                   further deposit of                         
                                   HK$11,000,000 will be payable              
                                   by the Purchaser on or before              
                                   3 March 2005 and the balance               
                                   of the consideration of                    
                                   HK$135,000,000 will be                     
                                   payable in cash upon                       
                                   completion. Completion of the              
                                   disposal of Property 2 is                  
                                   expected to take place on or               
                                   before 3 August 2005.                      
                                   Property 2 is to be sold                   
                                   subject to Tenancy Agreement               
                                   2. Tenancy Agreement 2 is for              
                                   a term of 3 years from 25                  
                                   July 2003 to 24 July 2006 for              
                                   a monthly rent of HK$285,000               
                                   (exclusive of rates,                       
                                   management fee and other                   
                                   miscellaneous expenses). To                
                                   the best of the Directors'                 
                                   knowledge, information and                 
                                   belief, having made all                    
                                   reasonable enquiries, Tenant               
                                   2 is an Independent Third                  
                                   Party.                                     
                                   Property 2 is the only asset               
                                   of Vendor 2 and Vendor 2 has               
                                   no other source of income.                 
                                   The net loss before and after              
                                   taxation for the financial                 
                                   year ended 31 March 2003 of                
                                   Vendor 2 was HK$1,110,175.                 
                                   The net profit before and                  
                                   after taxation for the                     
                                   financial year ended 31 March              
                                   2004 of Vendor 2 was                       
                                   HK$21,481,489. The net book                
                                   value of Property 2 was                    
                                   HK$78,000,000 as at 31 March               
                                   2003 and HK$98,000,000 as at               
                                   31 March 2004. The net                     
                                   liabilities of Vendor 2 were               
                                   HK$175,649,320 as at 31 March              
                                   2003 and HK$154,167,831 as at              
                                   31 March 2004.                             
                                   The rental deposit paid by                 
                                   Tenant 2 to Vendor 2 of                    
                                   HK$1,140,000 will be deducted              
                                   from the final payment of the              
                                   consideration upon                         
                                   completion.                                
                                                                              
                                                                              
    CONDITION PRECEDENT                                                       
                                                                              
    The Disposal will be binding on the Vendors upon the Company having       
    obtained all necessary approvals, if any, in respect of the Disposal      
    pursuant to the Listing Rules, including but not limited to the           
    obtaining of the Shareholder's approval.                                  
                                                                              
    The Purchaser is entitled to terminate both Provisional Agreement 1       
    and Provisional Agreement 2 should the Vendors fail to prove good         
    title for either Property 1 or Property 2.                                
                                                                              
    TERMINATION                                                               
                                                                              
    Subject to further agreement between the parties, the completion of       
    the Disposal can be delayed provided that Property 1 and Property 2       
    are disposed of at the same time.                                         
                                                                              
    If the disposal of either Property 1 or Property 2 is terminated due      
    to the default of either the Vendors or the Purchaser, both               
    Provisional Agreement 1 and Provisional Agreement 2 will be