09:08 WEIGAO GROUP<08199> - Announcement 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. This announcement, for which the Directors of Shandong Weigao Group Medical Polymer Company Limited collectively and individually accept full responsibility, includes particulars given in compliance with the Rules Governing the Listing of Securities on the Growth Enterprise Market of The Stock Exchange of Hong Kong Limited for the purpose of giving information with regard to Shandong Weigao Group Medical Polymer Company Limited. The Directors, having made all reasonable enquiries, confirm that, to the best of their knowledge and belief: (1) the information contained in this announcement is accurate and complete in all material respects and not misleading; (2) there are no other matters the omission of which would make any statement in this announcement misleading; and (3) all opinions expressed in this announcement have been arrived at after due and careful consideration and are founded on bases and assumptions that are fair and reasonable. Shandong Weigao Group Medical Polymer Company Limited* (a joint stock limited company incorporated in the People's Republic of China with limited liability) (Stock Code: 8199) DISCLOSEABLE AND CONNECTED TRANSACTION AND PROPOSED AMENDMENTS TO THE ARTICLES The Board is pleased to announce that on 14 March 2005, the Company entered into the Agreement with Weigao Holding, the controlling shareholder of the Company holding 62.46 interest in the Company and an associate of Mr. Chen who holds 30% interests in Weigao Holding, pursuant to which Weigao Holding agreed to sell the Properties to the Company at the consideration of RMB47,000,000 (equivalent to approximately HK$44,310,361) which shall be satisfied by the issue of the 48,160,000 Consideration Shares by the Company. The Company intends to use the Properties for the production of (i) blood purification products and (ii) orthopaedics products. Weigao Holding is the controlling shareholder of the Company and an associate of a director and hence a connected person of the Company. The transaction under the Agreement constitutes a connected transaction for the Company which is subject to the reporting, announcement and independent shareholders' approval requirements under Chapter 20 of the GEM Listing Rules, and a discloseable transaction for the Company under Chapter 19 of the GEM Listing Rules. Resolutions will be proposed, and if thought fit, passed at the SGM to approve, among others, the increase in the registered capital of the Company from RMB86,450,000 to RMB91,266,000 by the creation of an additional 48,160,000 Domestic Shares and the Agreement and the transactions contemplated thereunder. The increase in the registered capital of the Company for 48,160,000 Domestic Shares will facilitate the issue of the 48,160,000 Consideration Shares by the Company to Weigao Holding as consideration of the acquisition of the Properties. By Order of the Board Shandong Weigao Group Medical Polymer Company Limited Chen Xue Li Chairman Shandong, the PRC, 14 March 2005 The above announcement is a summary only. For the full version of this announcement, please refer to the `Latest Company Announcements' page on the GEM website at www.hkgem.com. * for identification purposes only Market participants are requested to note that the board meeting to approve the final results/dividend of Far Eastern Polychem Industries Limited (stock code: 8012) for the year ended 31/12/2004 originally scheduled on 14/3/2005 has been postponed to 24/3/2005.