09:52     VARITRONIX INTL<00710> - Announcement & Resumption (1)              

    The Stock Exchange of Hong Kong Limited takes no                          
    responsibilities 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.                                            
                                                                              
    VARITRONIX INTERNATIONAL LIMITED                                          
    (Incorporated in Bermuda with limited liability)                          
    (Stock Code : 710)                                                        
                                                                              
    SALE OF SHARES BY CERTAIN DIRECTORS,                                      
    APPOINTMENT OF DIRECTORS                                                  
    AND                                                                       
    APPOINTMENT OF COMPANY SECRETARY                                          
                                                                              
    The Board has been informed by Colville, Dr. Yan, Mr.                     
    Chung and Mr. Kwok that Colville and Dr. Yan have sold                    
    the Disposal Shares to the Investors at a price of                        
    HK$8.20 per Share and that Colville, Dr. Yan, Mr.                         
    Chung and Mr. Kwok have sold the Sale Shares to                           
    Rockstead at a price of HK$9.207 per Share on 14 March                    
    2005.                                                                     
                                                                              
    The Disposal Shares and Sale Shares represent                             
    approximately 16.41% of the existing issued share                         
    capital of the Company.                                                   
                                                                              
    On 14 March 2005, Mr. Tsoi Tong Hoo, Tony and Mr. Ho                      
    Te Hwai, Cecil were appointed as new executive                            
    Directors and Mr. Yuen Kin and Mr. Hou Ziqiang were                       
    appointed as new independent non-executive Directors.                     
    Mr. Tsoi Tong Hoo, Tony was also appointed as the Chief                   
    Executive Officer of the Group and Mr. Ho Te Hwai,                        
    Cecil was also appointed as the Company Secretary of                      
    the Company.                                                              
                                                                              
    At the request of the Company, trading of the Shares                      
    on the Stock Exchange has been suspended on 14 March                      
    2005 pending release of this announcement. The                            
    Company has applied for a resumption of trading in                        
    the Shares with effect from 10:00 a.m. on 15 March                        
    2005.                                                                     
                                                                              
    DISPOSAL OF EXISTING SHARES                                               
    The Board has been informed by Colville and Dr. Yan                       
    that they have on 14 March 2005, placed an aggregate                      
    of 35,000,000 Shares, representing approximately                          
    11.07% of the existing issued share capital of the                        
    Company to Investors at a price of HK$8.20 per                            
    Disposal Share, represents a discount of                                  
    approximately 9.4% below the closing price of HK$9.05                     
    per Share as quoted on the Stock Exchange on Friday,                      
    11 March 2005 (being the last trading day before the                      
    suspension of trading of the Shares on the Stock                          
    Exchange).                                                                
                                                                              
    SALE OF SHARES                                                            
    The Board has been informed by Colville, Dr. Yan, Mr.                     
    Chung and Mr. Kwok that they have on 14 March 2005                        
    sold to Rockstead the Sale Shares which in aggregate                      
    represents approximately 5.34% of the existing issued                     
    share capital of the Company, for a total cash                            
    consideration of HK$155,598,300 (or HK$9.207 per Sale                     
    Share).                                                                   
                                                                              
    The purchase price per Sale Share represents a premium                    
    of approximately 1.73% over the closing price of                          
    HK$9.05 per Share as quoted on the Stock Exchange on                      
    11 March 2005 (being the last trading day before the                      
    suspension of trading of the Shares on the Stock                          
    Exchange).                                                                
                                                                              
    SHAREHOLDING STRUCTURE