10:13     PAUL Y. ENG<00577> - Announcement (1)                               

    The Stock Exchange of Hong Kong Limited takes no                          
    responsibility 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.                                
                                                                              
    PAUL Y. ENGINEERING GROUP LIMITED                                         
    (incorporated in Bermuda with limited liability)                          
    (Stock Code: 577)                                                         
                                                                              
    ANNOUNCEMENT                                                              
                                                                              
    The Board wishes to announce the details of trading balances              
    due from certain entities as at 17th January, 2005 pursuant to            
    Rules 13.13 and 13.15 of the Listing Rules.                               
                                                                              
    ANALYSIS OF THE TRADING BALANCES AS AT 17TH JANUARY, 2005                 
    The board of directors of the Company (the "Board") wishes to             
    disclose pursuant to Rules 13.13 and 13.15 of the Rules (the              
    "Listing Rules") Governing the Listing of Securities on The               
    Stock Exchange of Hong Kong Limited (the "Stock Exchange")                
    details of amounts due in respect of trading balances due from            
    certain entities (as defined in Rule 13.11(2)(c)) to the                  
    Company and its subsidiaries (the "Group") as at 17th January,            
    2005, which exceed 8% of one or more of the relevant                      
    percentage ratios as set out in Rule 14.07 of the Listing                 
    Rules, as follows:-                                                       
                                                                              
                                                                              
                                                                              
    Entities                                                                  
                                                                              
    Amount of trading balances (HK$'000)                                      
                                                                              
    Percentage of Total Assets (Note 1)                                       
                                                                              
    Percentage of Market Capitalisation (Note 2)                              
                                                                              
    Cyber-port Limited (Note 3)   155,192   8.8%   24.8%                      
                                                                              
    Cheung Kong (Holdings) Limited, its subsidiaries and its                  
    affiliated companies (Notes 3 and 4)   318,046   17.9%   50.8%            
                                                                              
    Hutchison Whampoa Limited, its subsidiaries and its affiliated            
    companies (Notes 3 and 4)   229,438   12.9%   36.7%                       
                                                                              
    Hong Kong Housing Authority (Note 3)   56,417   3.2%   9.0%               
                                                                              
    Notes:                                                                    
                                                                              
    1.   "Total Assets" means the total assets of the Group of                
    HK$1,772,516,000 as at 30th September, 2004 according to the              
    Group's pro forma statement of assets and liabilities as set              
    out in the Company's prospectus dated 30th December, 2004.                
                                                                              
    2.   "Market Capitalisation" is the average closing price of              
    the Company as stated in the daily quotations sheets of the               
    Stock Exchange for the five business days immediately                     
    preceding 4th February, 2005, the soonest available                       
    information after the resumption of trading in the shares of              
    the Company on 28th January, 2005.                                        
                                                                              
    3.   The Company does not have any interests in any of the                
    above entities. These entities, their subsidiaries and their              
    affiliated companies are customers of the Group and are                   
    independent of the Company or its connected persons (as                   
    defined in the Listing Rules). The balances represent trading             
    balances including retention monies ("Trade Receivable"),                 
    which are unsecured, interest free and with payment terms                 
    within 1.5 month from date of certification, arose from                   
    construction services rendered by the Group to them.                      
                                                                              
    4.   The amounts of Trade Receivable from (1) Cheung Kong                 
    (Holdings) Limited, its subsidiaries and its affiliated                   
    companies; and (2) Hutchison Whampoa Limited, its subsidiaries            
    and its affiliated companies set out in the table above both              
    includes the Trade Receivable from Hutchison Whampoa Limited              
    and its subsidiaries in the sum of approximately HK$93,156,000.