09:19     HARMONY ASSET<00428>-Announcement & Resumption of Trading(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.                            
                                                                              
    HARMONY ASSET LIMITED                                                     
    (Incorporated in the Cayman Islands with limited liability)               
    (Stock code: 428)                                                         
                                                                              
    PLACING OF NEW SHARES UNDER GENERAL MANDATE AND RESUMPTION                
    OF TRADING                                                                
                                                                              
    UPBEST SECURITIES COMPANY LIMITED                                         
    PLACING AGENT                                                             
                                                                              
    On 1 March 2005, the Company entered into the Placing                     
    Agreement with the Placing Agent that the Company agreed                  
    to place, through the Placing Agent an aggregate of                       
    24,300,000 Placing Shares, on a fully underwritten basis,                 
    to not fewer than six placees (being independent individual,              
    corporation and/or institutional investors to be                          
    identified by the Placing Agent and the placees and their                 
    respective ultimate beneficial owners will be independent                 
    third parties not connected with the directors, chief                     
    executive or substantial shareholders of the Company or                   
    any of its subsidiaries or associates of any of them), at                 
    a price of HK$0.35 per Share.                                             
                                                                              
    The Placing Shares of 24,300,000 Shares represent                         
    approximately 20% of the Company's existing share capital                 
    and approximately 16.63% of the issued share capital as                   
    enlarged by the Placing.                                                  
                                                                              
    The Placing Price of HK$0.35 represents (i) a discount of                 
    approximately 12.50% to the closing price of the Shares                   
    of HK$0.40 quoted on the Stock Exchange on 1 March 2005,                  
    being the date prior to the suspension; (ii) a discount                   
    of approximately 11.62% to the average closing price of                   
    the Shares of HK$0.396 quoted on the Stock Exchange for                   
    the five consecutive trading days immediately before and                  
    excluding 1 March 2005; and (iii) a discount of                           
    approximately 16.27 % to the average closing price of the                 
    Shares of HK$0.418 quoted on the Stock Exchange for the                   
    ten consecutive trading days immediately before and                       
    excluding 1 March 2005 (iv) a discount of about 71.54% of                 
    the net asset value per Share of HK$1.23 as at 31 January                 
    2005, the latest published unaudited financial                            
    information.                                                              
                                                                              
    The gross proceeds from the Placing will be approximately                 
    HK$8.505 million and net proceeds from the Placing of                     
    approximately HK$8.155 million will be used as investment                 
    in listed and unlisted securities with earnings growth and                
    capital appreciation potential which is in accordance with                
    the Company's investment policy.                                          
                                                                              
    The Placing is conditional upon, among other things, (1)                  
    the Listing Committee of the Stock Exchange granting the                  
    listing of, and permission to deal in the Placing Shares                  
    and (2) the Company obtaining all consents and approvals                  
    from the relevant authorities, if applicable.                             
                                                                              
    At the request of the Company, dealings in the Shares on                  
    the Stock Exchange were suspended with effect from 2 March                
    2005 on 9:30 a.m. pending for the release of this                         
    announcement. Application has been made for the resumption                
    of trading on the Stock Exchange with effect from 3 March                 
    2005 on 9:30 a.m.                                                         
                                                                              
    PLACING AGREEMENT DATED 1 MARCH 2005                                      
                                                                              
    (1)   Parties involved                                                    
       Issuer                                                                 
    Harmony Asset Limited                                                     
                                                                              
       Placing Agent                                                          
    Upbest Securities Company Limited, a deemed licensed                      
    corporation within the meaning of the SFO, and its ultimate               
    beneficial owners are independent third parties not                       
    connected with the directors, chief executive or                          
    substantial shareholder of the Company or any of its                      
    subsidiaries or associates of any of them.