10:03     KINGWAY BREW<00124> - Announcement                                  

    KINGWAY BREWERY HOLDINGS LIMITED                                          
    *                                                                         
    (Incorporated in Bermuda with limited liability)                          
    (Stock Code: 124)                                                         
                                                                              
    Reference is made to the announcements of the Company                     
    dated 20 January, 27 January and 25 February 2005.                        
    The Board has been informed by each of GDH and HAPBC                      
    that discussions between them regarding                                   
    shareholdings in the Company remain at a very                             
    preliminary stage, that there has been no progress                        
    since 25 February 2005 (the date of the Company's                         
    previous announcement) and that the preliminary                           
    discussions may or may not lead to any acquisition                        
    which would trigger an obligation to make a mandatory                     
    offer under The Hong Kong Code on Takeovers and                           
    Mergers, or any acquisition at all.                                       
                                                                              
    It was stated in the announcement dated 20 January                        
    2005 that Kingway Brewery Holdings Limited (the                           
    "Company") was informed by GDH Limited ("GDH"), the                       
    controlling shareholder of the Company holding                            
    approximately 52.63% of the issued share capital of                       
    the Company, that GDH was engaged in preliminary                          
    discussions with Heineken-APB (China) Pte Ltd.                            
    ("HAPBC"), a substantial shareholder of the Company                       
    holding approximately 21.44% of the issued share                          
    capital of the Company, regarding a possible increase                     
    by HAPBC of its shareholding interest in the Company.                     
    The board of directors of the Company (the "Board")                       
    has made further enquiry with GDH and HAPBC and has                       
    been informed by each of GDH and HAPBC that                               
    discussions between them remain at a very preliminary                     
    stage, that there has been no progress since 25                           
    February 2005 (the date of the Company's previous                         
    announcement) and that the preliminary discussions                        
    may or may not lead to any acquisition which would                        
    trigger an obligation to make a mandatory offer under                     
    The Hong Kong Code on Takeovers and Mergers, or any                       
    acquisition at all. The Board will issue a further                        
    announcement if and when there is any material                            
    development of which it becomes aware.                                    
                                                                              
    On behalf of the Board                                                    
    Ye Xuquan                                                                 
    Chairman                                                                  
                                                                              
    Hong Kong, 24 March 2005                                                  
                                                                              
    The directors of the Company jointly and severally                        
    accept full responsibility for the accuracy of                            
    information contained in this announcement and                            
    confirm, having made all reasonable inquiries, that                       
    to the best of their knowledge, the opinions expressed                    
    in this announcement have been arrived at after due                       
    and careful consideration and that there are no other                     
    facts relating to the Company not contained in this                       
    announcement, the omission of which would make any                        
    statement in this announcement misleading.                                
                                                                              
    As at the date of this announcement, the executive                        
    directors are Ye Xuquan, Jiang Guoqiang and Fung Sing                     
    Hong, Stephen; the non-executive directors are Koh                        
    Poh Tiong, Han Cheng Fong, Herman Petrus Paulus Maria                     
    Hofhuis, Zhao Leili, Luo Fanyu, Ho Lam Lai Ping,                          
    Theresa and Michael Wu; and the independent                               
    non-executive directors are Alan Howard Smith, V-nee                      
    Yeh and Rafael Gil-Tienda.                                                
                                                                              
    * For identification purpose only