09:30 C.P. POKPHAND<00043> - Announcement & Resumption (3) With the implementation of the Capital Reorganisation, the credit of US$86,339,231 (based on the 2,158,480,786 Shares in issue as at the date of this announcement) or US$104,775,078 based on 2,619,376,942 Shares in issue assuming the subscription rights attaching to all the outstanding Share Options are exercised before the Capital Reorganisation becomes effective) will be applied to the contributed surplus account of the Company, where it may be utilized by the Directors in accordance with the bye-laws of the Company and all applicable laws, including to eliminate the accumulated losses of the Company. The Directors advise that the Company's results announcement for the year ended 31st December, 2004 is expected to be issued by the end of March or early April, 2005. In other words, the audited accumulated losses of the Company as at 31st December, 2004 will only be ascertained by that time; hence, it is not possible now to ascertain the net effect of the above-mentioned elimination in monetary terms in this announcement. For information purposes, the audited accumulated losses of the Company for the year ended 31st December, 2003 stood at US$66,496,000. The Capital Reorganisation will have no material effect on the consolidated net assets of the Group. Other than the expenses to be incurred by the Company in relation to the Capital Reorganisation, the implementation thereof will not, by itself, materially alter the underlying assets, business operations, management or financial position of the Group or the interests of the Shareholders as a whole. Conditions of the Capital Reorganisation The implementation of the Capital Reorganisation is conditional upon, among other things: (1) the passing of a special resolution to approve the Capital Reorganisation by the Shareholders at the SGM; (2) the Listing Committee of the Stock Exchange granting the listing of, and permission to deal in, the Adjusted Shares; and (3) the proper compliance with section 46 of the Companies Act in relation to the Capital Reduction, including the publication of a notice in relation to the Capital Reduction in Bermuda and a certificate being signed by a Director confirming that on the date as from which the Capital Reduction is to have effect, there are no reasonable grounds for believing that the Company is, and after the Capital Reduction would be, unable to pay its liabilities as they become due. The Capital Reorganisation is not conditional upon the implementation of the Subscription. Expected Timetable 2005 Despatch of the circular to the Shareholders containing, among others, notice of the SGM Thursday, 24th March Time and date of the SGM 9:30 a.m. On Monday, 18th April Effective date of the Capital Reorganisation Tuesday, 19th April Dealings in the Adjusted Shares on the Stock Exchange commence 9:30 a.m. on Tuesday, 19th April Free exchange of certificates for existing Shares for certificates for Adjusted Shares commences Tuesday, 19th April Free exchange of certificates for existing Shares for certificates for Adjusted Shares ends Tuesday, 17th May Dates stated in this announcement for events in the timetable are indicative only and may be extended or varied. Any changes to the above expected timetable will be announced as appropriate.