10:17     HI SUN GROUP<00818> - Announcement (12)                             

      Incentive Scheme              and the maximum number of                 
    Option Shares which may be granted to any director                        
    of the Turbo Speed Group) may be altered by a                             
    resolution of the Committee but no alteration may                         
    adversely affect the rights of Selected Employees                         
    under Options already granted except (i) with consent                     
    of the relevant Selected Employees in writing; or (ii)                    
    with the sanction of a special resolution passed at                       
    a meeting of the Selected Employees. In addition, any                     
    alteration to the purchase price such that it is less                     
    than HK$1.922 per share will have to be approved by                       
    the shareholders of Turbo Speed in general meeting.                       
    In any event, any alteration of the principal terms                       
    of the Employee Incentive Scheme (including those as                      
    disclosed in this announcement) will be subject to                        
    Shareholders' approval and full compliance with any                       
    other applicable Listing Rules by the Company.                            
                                                                              
    Notes:                                                                    
                                                                              
    1.      The members of the Committee will be constituted                  
    by members of the Board (including independent                            
    non-executive Directors).                                                 
                                                                              
    2.      In the event that the Turbo Speed Shares will be                  
    offered to an Employee who is also a connected person                     
    (as defined in the Listing Rules) of the Company, the                     
    Company will ensure such offer to be made in full                         
    compliance with Chapter 14A of the Listing Rules.                         
                                                                              
    3.      The Directors do not have any definite plan to seek               
    for the listing of the Turbo Speed Group at present.                      
    However, the Directors do not rule out the possibility                    
    of pursuing such exercise when appropriate                                
    circumstances arise.                                                      
                                                                              
    The initial purchase price of HK$1.922 per Scheme                         
    Share represents a premium of approximately HK$2.279                      
    per Turbo Speed Share over the unaudited consolidated                     
    net liabilities of HK$0.357 per Turbo Speed Share as                      
    at 30 September 2004.                                                     
                                                                              
    Exercise of Options offered to Employees depends on                       
    the performance of Turbo Speed and Options granted                        
    may or may not be exercised.                                              
                                                                              
    The transfer of the Scheme Shares to the Selected                         
    Employees will result in a disposal of the equity                         
    interest in Turbo Speed by the Company. The gain or                       
    loss arising from such disposal depends on the net                        
    assets per Scheme Share as at the time of the purchase                    
    of the Option Shares. For illustrative purposes,                          
    based on the unaudited net assets of Turbo Speed as                       
    at 30 September 2004 and the initial purchase price                       
    per Scheme Share of HK$1.922, the Company is expected                     
    to record a gain of approximately HK$11 million                           
    assuming all the Scheme Shares are granted to and                         
    purchased by the Selected Employees, which gain is                        
    subject to adjustment and review by the auditors of                       
    the Company and on this basis, the net asset value                        
    of the Group is expected to increase.                                     
                                                                              
    The net proceeds from the disposal of the Scheme                          
    Shares will be used for the working capital of the                        
    Group. The Directors consider that the terms of the                       
    Employee Incentive Scheme are fair and reasonable and                     
    in the interests of the Shareholders as a whole.                          
                                                                              
                                                                              
    As at the date of this announcement, the Company owns                     
    the entire issued share capital of Turbo Speed.                           
    Following completion of the Subscription, the