09:30     ASIA RESOURCES<00899> - Announcement (3)                            

    sheets of Siping Yatai and Silver Epoch as at 28 February 2005            
    and taking into account of the deed of waiver to be given by              
    the Vendor and the above mentioned unrecovable receivables, the           
    consolidated net liability of Silver Epoch is estimated to be             
    approximately HK$23 million.                                              
                                                                              
    Completion                                                                
                                                                              
    Completion of the Agreement is to take place on or before the             
    14th Business Day following the date on which the last of the             
    conditions precedent to completion having been fulfilled.                 
                                                                              
    REASONS FOR THE ACQUISITION                                               
                                                                              
    The Board considers that the PRC pharmaceutical market will be            
    one of the fastest growing industries in the PRC. Based on the            
    Group's experience and experitse in running pharmaceutical                
    plants, the Board foresees a constantly increasing demand for             
    intravenous fluids and wishes to further expand in the business           
    with an aim to strengthen the income base of the Group. At present,       
    the Group runs two production plants (one in Zhejiang province,           
    PRC and one in Jilin province, PRC) and has total production              
    capacity of about 66 million bottles of intravenous fluids per            
    annum which may not meet the market demand as expected. The               
    Acquisition can increase the production capacity of the Group             
    by about 40%. It will also enlarge the market share of the Group          
    and bring financial benefits to the Group. Given Siping Yatai             
    is next to one of the existing plants of the Group, sourcing,             
    manufacturing and other synegies to be achieved after completion          
    are expected to be significant.                                           
                                                                              
    The Board considers that the terms of the Agreement are fair              
    and reasonable and believes that the Acquisition is in the best           
    interests of the Company and the shareholders of the Company              
    as a whole.                                                               
                                                                              
    INFORMATION ON THE GROUP                                                  
                                                                              
    The Company is an investment holding company. The Group is                
    engaged in the manufacturing and sales of pharmaceutical                  
    products, including the intravenous fluid and the plastic                 
    bottles that hold the fluid, in the PRC.                                  
                                                                              
    GENERAL                                                                   
                                                                              
    The Acquistion constitutes a discloseable transaction of the              
    Company under Chapter 14 of the Listing Rules. A circular                 
    containing further information on the Acquisition will be                 
    despatched to shareholders as soon as practicable.                        
                                                                              
    DEFINITIONS                                                               
                                                                              
    In this announcement, unless the content otherwise requires,              
    the following expressions have the following meanings:                    
                                                                              
    "Acquisition"   the acquisition of the entire issued share                
    capital of Silver Epoch                                                   
                                                                              
    "Agreement"     the sale and purchase agreement dated 21 March 2005       
    entered into between the Vendor and the Purchaser in relation             
    to the Acquisition                                                        
                                                                              
    "Billion Source"        Billion Source Investments Limited, a             
    company incorporated                                                      
      or "Purchaser"        with limited liability in the British Virgin      
    Islands and a wholly-owned subsidiary of the Company                      
                                                                              
    "Board" the board of directors of the Company