10:12     HI SUN GROUP<00818> - Announcement (3)                              

    the Convertible Preference Shares at a total                              
    subscription price of US$4 million (approximately                         
    HK$31.2 million). The Convertible Preference Shares                       
    represent approximately 19.1% of the existing total                       
    number of issued shares of Turbo Speed and                                
    approximately 16.0% of the total number of issued                         
    shares of Turbo Speed as enlarged by the Subscription.                    
    The details of the Subscription Agreement is set out                      
    below:                                                                    
                                                                              
    Date    :       9 November 2004                                           
                                                                              
    Issuer  :       Turbo Speed, a wholly owned subsidiary of                 
    the Company                                                               
                                                                              
    Subscribers     :       (i)     Comtel Development                        
                                                                              
    (ii)    Acme Partner                                                      
                                                                              
    To the Directors' best knowledge, information and                         
    belief having made all reasonable enquiry, each of                        
    the Subscribers and their respective ultimate                             
    beneficial shareholders are not connected (for the                        
    purpose of the Listing Rules) with any of the                             
    directors, chief executive or substantial                                 
    shareholders of the Company and its subsidiaries or                       
    any of their respective associates.                                       
                                                                              
    Warrantor       :       The Company                                       
                                                                              
    The Company has essentially guaranteed the                                
    performance by Turbo Speed of its obligations under                       
    the Subscription Agreement.                                               
                                                                              
    The Subscription        :       Pursuant to the Subscription              
    Agreement, Turbo Speed will issue the Convertible                         
    Preference Shares to the Subscribers for a total                          
    consideration of US$4 million (approximately HK$31.2                      
    million).                                                                 
                                                                              
    The Convertible Preference Shares represent                               
    approximately 16.0% of the total number of issued                         
    shares of Turbo Speed as enlarged by the Subscription                     
    and will be issued to the Subscribers in the following                    
    manner:-                                                                  
                                                                              
    (i)     5,128,206 of the Convertible Preference Shares,                   
    which represent approximately 12.0% of the total                          
    number of issued shares of Turbo Speed as enlarged                        
    by the Subscription, will be issued to Comtel                             
    Development at an aggregate subscription price of                         
    US$3 million (approximately HK$23.4 million); and                         
                                                                              
    (ii)    1,709,402 of the Convertible Preference Shares,                   
    which represent approximately 4.0% of the total                           
    number of issued shares of Turbo Speed as enlarged                        
    by the Subscription, will be issued to Acme Partner                       
    at an aggregate subscription price of US$1 million                        
    (approximately HK$7.8 million).                                           
                                                                              
    Settlement of the       :       The total subscription price              
    of US$4 million (approximately HK$31.2 million) will                      
      subscription price            be settled in cash by the                 
    Subscribers in the following manner:-                                     
                                                                              
    (i)     as to a sum of US$3 million (approximately                        
    HK$23.4 million) by Comtel Development; and                               
                                                                              
    (ii)    as to a sum of US$1 million (approximately                        
    HK$7.8 million) by Acme Partner.                                          
                                                                              
    The subscription monies, which have been paid by                          
    Comtel Development and Acme Partner on 12 November