09:20     CAPITAL STRAT<00497>-Announcement & Resumption of Trading(6)        

    484,247,950                100.00                                         
                                                                              
                                                                              
    Note: Mr. Chung Cho Yee, Mico ("Mr. Chung") holds 420,000 Shares          
    personally. Earnest Equity Limited, the entire share capital of which     
    is held by Digisino Assets Limited ("Digisino") as trustee of a           
    discretionary trust founded by Mr. Chung who together with his spouse     
    and children are the current discretionary beneficiaries. Furthermore,    
    the entire issued share capital of Digisino is held by Mr. Chung and      
    that both Digisino and Earnest Equity are corporations controlled by      
    him.                                                                      
                                                                              
    3.        REASONS FOR THE SUBSCRIPTION AND THE PLACING, AND USE OF        
    PROCEEDS                                                                  
                                                                              
    The Group is principally engaged in property investment, strategic        
    investment and securities investment.                                     
                                                                              
    The Board views the Subscription and the Placing as a good opportunity    
    to strengthen the Company's balance sheet as well as to better equip      
    the Group with the financial flexibility to capture those                 
    opportunities in making larger scale property investment, including       
    high quality property projects, and strategic investment both in Hong     
    Kong and within South East Asia in which the Company considers may        
    provide lucrative investment return. Although the Group reviews and       
    considers investment opportunities from time to time, the Group           
    currently has no concrete plans or identified any targets for             
    investment purposes.                                                      
                                                                              
    The Directors also believe that by placing the Shares with the            
    Strategic Investors under the Subscription (namely Eisner, New Oval       
    and Calveston, which are wholly and beneficially-owned by Mr. Li Tzar     
    Kai, Richard, ITC and Mr. Yuen Tin Fan Francis respectively), the         
    Company would stand to benefit from any future business developments      
    and new investment opportunities that the Strategic Investors may come    
    across or be involved in from time to time. The Board also recognizes     
    that the Strategic Investors have extensive business connections in       
    the Asia Pacific Region as well as in other parts of the world.           
                                                                              
    The Company did not have any equity fund raising activities in the        
    past 12 months.                                                           
                                                                              
    The net proceeds from the Subscription and the Placing are estimated      
    to be approximately HK$106.5 million. It is expected that the entire      
    amount of the net proceeds will be utilized for property investment       
    and strategic investment. As mentioned above, the Group continues to      
    review and consider investment opportunities as and when they arise.      
    However, the Group currently has no concrete plans or identified any      
    targets for investment purposes.                                          
                                                                              
    The Directors, having considered the reasons for the Subscription and     
    the Placing set out in this paragraph, are of the view that the terms     
    of the Subscription Agreements and the Placing Agreement (including       
    the Subscription Price as set out in paragraph 1.4 above) are fair and    
    reasonable and are in the interests of the Company and the                
    Shareholders as a whole.                                                  
                                                                              
    4.        GENERAL                                                         
                                                                              
    Access Capital has been retained as the financial adviser to the          
    Company in relation to the Subscription and the Placing.                  
                                                                              
    As the Strategic Investors and the Agent are independent third            
    parties, no Shareholder will be required to abstain from voting at the    
    Special General Meeting to be held to consider, and if thought fit, to    
    approve the Subscription and the Placing.                                 
                                                                              
    A circular containing, among other things, further details of the         
    Subscription, the Placing and notice of the Special General Meeting       
    will be dispatched to the Shareholders as soon as practicable in          
    accordance with the Listing Rules.                                        
                                                                              
    5.        SUSPENSION AND RESUMPTION OF TRADING IN THE SHARES              
                                                                              
    At the request of the Company, trading in the Shares has been             
    suspended with effect from 9:30 a.m. on 8 March 2005 pending the issue    
    of this announcement. Application has been made by the Company for the    
    resumption of trading in the Shares with effect from 9:30 a.m. on 9       
    March 2005.                                                               
                                                                              
    6.        DEFINITIONS                                                     
                                                                              
    "Access Capital"        Access Capital Limited, the financial adviser