09:47     ORIENT POWER<00615> - Announcement (3)                              

    Completion date:                                                          
    The subscription is expected to be completed on or before                 
    11th April, 2005 after it has become unconditional.                       
                                                                              
    Reasons for the transaction:                                              
    JV Co requires additional working capital to finance the                  
    expansion in its sales and distribution in the PRC, after                 
    its establishment of a network of over 400 points of sales                
    in major cities in the PRC in June 2004, in view of an                    
    expected significant growth of domestic sales in the next                 
    few years and so made the Offer to the Subscriber and the                 
    JV Partner. The Subscriber accepted the Offer as the                      
    subscription will allow it to increase its equity interest                
    in JV Co and accordingly greater participation in the PRC                 
    market and the business expansion of JV Co will also benefit              
    the Group in establishing its presence in the PRC market.                 
    The Company does not consider an immediate corresponding                  
    increase of its board representation in JV Co material in                 
    view of the fact that the existing legal representative                   
    of JV Co is nominated by the Subscriber.                                  
                                                                              
    Connection between the parties:                                           
    The Company confirms that, save as aforesaid, to the best                 
    of the directors' knowledge, information and belief having                
    made all reasonable enquiry, JV Co, the JV Partner and its                
    ultimate beneficial owner are third party independent of                  
    and not connected with the Company or any connected person                
    (as defined in the Listing Rules) of the Company.                         
                                                                              
    Information for shareholders:                                             
    The Group is principally engaged in the development,                      
    manufacture, sale and distribution of information and                     
    entertainment products for home and automobiles, the                      
    development and provision of networking technology                        
    services, and the provision of integrated solutions and                   
    services for the cable TV industry. As at the date of this                
    announcement, the directors of the Company comprise Messrs.               
    Poon Ka Hung, Wu Lai Ping and Lin Hoo Fun as executive                    
    directors; Ms. Jennifer Cheung Mei Ha, Mr. Edward Fung Chi                
    Kong and Mr. Leung Chun Pong as non-executive directors;                  
    and Messrs. Joseph Chan Wing Tai, Tay Chee Hung and Tang                  
    Tin Ying as independent non-executive directors.                          
                                                                              
    For the Company, as the consideration ratio, revenue ratio                
    and asset ratio (all as defined in the Listing Rules)                     
    related to the subscription are approximately 13.28%, 7.18%               
    and 13.78% respectively, the subscription is a discloseable               
    transaction under the Listing Rules.                                      
                                                                              
    A circular giving details of the subscription will be sent                
    to shareholders within 21 days after publication of this                  
    announcement.                                                             
                                                                              
    By Order of the Board                                                     
    Poon Ka Hung                                                              
    Chairman                                                                  
                                                                              
    Hong Kong, 17th March, 2005