09:14     TAKSON HOLDINGS<00918> - Announcement (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 liability            
    whatsoever for any loss howsoever arising from or in reliance upon the    
    whole or any part of the contents of this announcement.                   
                                                                              
    TAKSON HOLDINGS LIMITED                                                   
    (Incorporated in Bermuda with limited liability)                          
    (Stock Code: 918)                                                         
                                                                              
    DISCLOSEABLE TRANSACTION RELATING TO                                      
    THE FORMATION OF A JOINT VENTURE COMPANY                                  
                                                                              
    On 26th January, 2005, Takson Garment, a wholly-owned subsidiary of the   
    Company and Chongqing Union-4 entered into a joint venture agreement to   
    form a joint venture company in Suzhou, PRC.                              
                                                                              
    Takson (Suzhou) will be a sino-foreign equity joint venture whose         
    currently proposed operations are the manufacture, export and sale of     
    varies types of textile products, clothings and accessories.              
                                                                              
    LISTING RULES IMPLICATIONS                                                
                                                                              
    As the investment amount of RMB5,500,000 (equivalent to approximately     
    HK$5,200,000) exceeds 5% of the results of the asset and consideration    
    tests as calculated under Rule 14.07 of the Listing Rules, the entering   
    into the Joint Venture Agreement constitutes a discloseable transaction   
    for the Company under Chapter 14 of the Listing Rules. A circular         
    containing details of the formation of the Joint Venture Company will be  
    despatched to Shareholders as soon as practicable.                        
                                                                              
    The Directors are pleased to announce that on 26th January, 2005, Takson  
    Garment, a wholly-owned subsidiary of the Company and Chongqing Union-4   
    entered into the Joint Venture Agreement to form the Joint Venture        
    Company in Suzhou, PRC. Details are contained in this announcement.       
                                                                              
    THE JOINT VENTURE AGREEMENT                                               
                                                                              
    Date                                                                      
                                                                              
    26th January, 2005                                                        
                                                                              
    Parties                                                                   
                                                                              
    (1)        Chongqing Union-4                                              
                                                                              
    (2)        Takson Garment, a wholly-owned subsidiary of the Company       
                                                                              
    Having made all reasonable enquiry, the Directors confirm to the best of  
    their knowledge, information and belief that Chongqing Union-4 and its    
    ultimate beneficial owner are third parties independent of and not        
    connected with the directors, chief executive or substantial              
    shareholders of the Company or its subsidiaries or any of their           
    respective associates.                                                    
                                                                              
    Joint Venture Company                                                     
                                                                              
    The proposed name of the Joint Venture Company is * (Takson (Suzhou)      
    Garment Mfg. Co. Limited).                                                
                                                                              
    Term                                                                      
                                                                              
    20 years                                                                  
                                                                              
    Investment amount                                                         
                                                                              
    RMB10,000,000 (equivalent to approximately HK$9,452,000). This amount     
    was arrived after arm's length discussions between the parties by         
    reference to the anticipated capital expenditure and working capital      
    requirement of the Joint Venture Company.                                 
                                                                              
    Registered capital                                                        
                                                                              
    RMB$10,000,000 (equivalent to approximately HK$9,452,000)                 
                                                                              
    Capital injection into registered capital                                 
                                                                              
    Joint Venture        Amount of                        Percentage of       
    total                                                                     
    Party        capital injection        By way of                           
    registered capital                                                        
            RMB                HK$                                %           
                            equivalent                                        
                            (approximate)