10:13     PAUL Y. ENG<00577> - Announcement (2)                               

    All the above balances are the Trade Receivable of certain                
    subsidiaries of Paul Y. - ITC Construction Holdings (B.V.I.)              
    Limited ("Paul Y Construction") which has become a wholly-                
    owned subsidiary of the Company since 17th January, 2005. Due             
    to the nature of construction business of Paul Y Construction,            
    it normally takes a period of around 2 to 3 months after the              
    end of each project month which it is involved in obtaining               
    the relevant certification for ascertaining the amount of                 
    Trade Receivable. Accordingly, there is a time lag from the               
    date of actual incurrence of the Trade Receivable for                     
    construction works done to the actual date when the Company               
    ascertains this amount. The Company submitted this                        
    announcement to the Stock Exchange for clearance as soon as               
    practicable after it has ascertained the amounts of Trade                 
    Receivable in compliance with Rules 13.13 and 13.15                       
                                                                              
    GENERAL                                                                   
    As at the date of this announcement, the Board comprises:                 
                                                                              
    Mr. Ronald James Blake   :   Chairman and Independent Non-                
    Executive Director                                                        
    Mr. Lau Ko Yuen, Tom   :   Deputy Chairman and Non-Executive              
    Director                                                                  
    Mr. Wong Wing Hoo, Billy   :   Managing Director and Executive            
    Director                                                                  
    Mr. Lee Hon Chiu   :   Executive Director                                 
    Professor Lee Chack Fan   :   Independent Non-Executive                   
    Director                                                                  
    Mr. Iain Ferguson Bruce   :   Independent Non-Executive                   
    Director                                                                  
                                                                              
    By Order of the Board of                                                  
    Paul Y. Engineering Group Limited                                         
    Mui Ching Hung, Joanna                                                    
    Company Secretary                                                         
                                                                              
    Hong Kong, 18th March, 2005