09:14     EGANAGOLDPFEIL<00048> - Announcement (3)                            

                                                                              
    `Group'                        the Company, together with                 
                                   its subsidiaries                           
    `KEG'                          Kuraray Europe GmbH, a                     
                                   company incorporated in                    
                                   Germany                                    
    `Kuraray'                      Kuraray Co. Limited, a                     
                                   company incorporated in Japan              
    `Kuraray group'                Kuraray and its subsidiaries               
    `Lorica'                       Lorica Sud Srl, a company                  
                                   incorporated in Italy and a                
                                   non-wholly owned subsidiary                
                                   of the Company                             
    `Lorica Transactions'          the transactions in                        
                                   connection with the purchase               
                                   of raw materials from Kuraray              
                                   group through KEG by Lorica                
    `Old Listing Rules'            Rules Governing the Listing                
                                   of Securities on the Stock                 
                                   Exchange in force prior to 31              
                                   March 2004                                 
    `Listing Rules'                Rules Governing the Listing                
                                   of Securities on the Stock                 
                                   Exchange effective on 31                   
                                   March 2004                                 
    `Raw Materials'                Undyed sheet material for the              
                                   manufacture of full                        
                                   grain-type and/or suede-type               
                                   man-made leather                           
    `Shareholders'                 the shareholders of the                    
                                   Company                                    
    `Stock Exchange'               The Stock Exchange of Hong                 
                                   Kong Limited                               
    `Supply Agreement'             a supply agreement dated 30                
                                   March 2000 entered between                 
                                   Kuraray and Lorica                         
    `Upbest'                       Upbest Securities Company                  
                                   Limited                                    
                                                                              
                                                                              
                                                                              
    As at the date of this announcement, the Board comprises Mr.              
    Hans-Joerg SEEBERGER, Mr. Peter Ka Yue LEE, Mr. Michael Richard POIX,     
    Mr. Ho Yin CHIK and Mr. David Wai Kwong WONG as executive directors,      
    and Professor Udo GLITTENBERG, Dr. Goetz WESTERMEYER and Mr. Andy         
    Yick Man NG as independent non-executive directors.                       
                                                                              
    By Order of the Board                                                     
    Hans-Joerg SEEBERGER                                                      
    Chairman and Chief Executive                                              
                                                                              
    Hong Kong, 25th February, 2005