09:37     EASYKNIT INT'L<01218> - Announcement & Resumption (2)               

                                   Provisional Agreement 1, a                 
                                   further deposit of                         
                                   HK$5,000,000 will be payable               
                                   by the Purchaser on or before              
                                   3 March 2005 and the balance               
                                   of the consideration of                    
                                   HK$63,000,000 will be payable              
                                   in cash upon completion.                   
                                   Completion of the disposal of              
                                   Property 1 is expected to                  
                                   take place on or before 3                  
                                   August 2005.                               
                                   Property 1 is to be sold                   
                                   subject to Tenancy Agreement               
                                   1. Tenancy Agreement 1 is for              
                                   a term of 2 years from 13 May              
                                   2004 to 12 May 2006 for a                  
                                   monthly rent of HK$160,000                 
                                   (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               
                                   1 is an Independent Third                  
                                   Party.                                     
                                   Property 1 is the only asset               
                                   of Vendor 1 and Vendor 1 has               
                                   no other source of income.                 
                                   The net loss before taxation               
                                   for the financial year ended               
                                   31 March 2003 of Vendor 1 was              
                                   HK$6,804,291 and its net loss              
                                   after taxation was                         
                                   HK$6,752,291. The net profit               
                                   before taxation of Vendor 1                
                                   for the financial year ended               
                                   31 March 2004 was                          
                                   HK$8,420,716 and its net                   
                                   profit after taxation was                  
                                   HK$8,080,716. The net book                 
                                   value of Property 1 was                    
                                   HK$28,000,000 as at 31 March               
                                   2003 and HK$36,000,000 as at               
                                   31 March 2004. The net                     
                                   liabilities of Vendor 1 were               
                                   HK$6,485,106 as at 31 March                
                                   2003 and the net assets were               
                                   HK$2,238,250 as at 31 March                
                                   2004.                                      
                                   The rental deposit paid by                 
                                   Tenant 1 to Vendor 1 of                    
                                   HK$480,000 will be deducted                
                                   from the final payment of the              
                                   consideration upon                         
                                   completion.                                
                                                                              
    Property 2                                                                
                                                                              
    Contract date: 17 February 2005                                           
    Parties:                                                                  
    Vendor 2:                      Perfect Luck Development                   
                                   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 2:                    Shop 20 on Ground Floor and                
                                   Shop 20 on the First 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 2 at a consideration              
                                   of HK$150,000,000. Vendor 2                
                                   is selling Property 2 as its               
                                   owner. The Purchaser and