10:09     LUKS IND(GROUP)<00366> - 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.                                                             
                                                                              
    LUKS INDUSTRIAL (GROUP) LIMITED                                           
    (incorporated in Bermuda with limited liability)                          
    (Stock Code: 366)                                                         
                                                                              
    DISCLOSEABLE TRANSACTION                                                  
    PROPOSED AGREEMENT FOR THE PURCHASE OF THE                                
    FACILITIES OF A CLINKERS' PRODUCTION LINE TO BE INSTALLED IN              
    VIETNAM                                                                   
                                                                              
    Best Deluxe Assets, a wholly-owned subsidiary of the Company              
    entered into a conditional agreement with China National                  
    Aero-Technology on 23rd March 2005 in connection with the                 
    Purchase of the Facilities of a clinkers' production line to              
    be installed in Vietnam at a total consideration of US$10.709             
    million (approximately HK$83,530,200.00), subject to the terms            
    and conditions set out in the Agreement.                                  
                                                                              
    The Agreement constitutes a discloseable transaction of the               
    Company pursuant to Chapter 14 of the Listing Rules. A circular           
    containing details of the transaction will be despatched to the           
    Shareholders as soon as practicable.                                      
                                                                              
    THE AGREEMENT                                                             
                                                                              
    Date:   23 March 2005                                                     
                                                                              
    Parties:        (1)     Best Deluxe Assets, a wholly-owned subsidiary of  
    the Company; and                                                          
                                                                              
    (2)     China National Aero-Technology                                    
                                                                              
    To the best knowledge, information and belief of the Directors            
    having made all reasonable enquiries, China National                      
    Aero-Technology and its ultimate beneficial owner are third               
    parties independent of the Company and its subsidiaries and               
    connected persons (as defined in the Listing Rules ) of the               
    Company and its subsidiaries.                                             
                                                                              
    Subject matter: the Purchase                                              
                                                                              
    Consideration:  The consideration is US$10.709 million                    
    (approximately HK$83,530,200.00) which will be satisfied by               
    payments in cash and  Letters of Credit respectively as follows:          
                                                                              
    (1)     a cash deposit of US$3,212,700.00 (approximately                  
    HK$25,059,060.00) representing 30% of the total Consideration             
    which will be payable within 30 days from the date of signing             
    the Agreement and upon the receipt of Letter of Undertaking by            
    Best Deluxe Assets;                                                       
                                                                              
    (2)     Best Deluxe Assets will deliver to China National                 
    Aero-Technology the First Letter of Credit for the sum of                 
    US$3,748,150.00 (approximately HK$29,235,570.00) representing             
    35% of the total Consideration within 60 days from the date of            
    the signing of the Agreement; and                                         
                                                                              
    (3)     Best Deluxe Assets will deliver to China National                 
    Aero-Technology the  Second Letter of Credit for the sum of               
    US$3,748,150.00 (approximately HK$29,235,570.00) representing             
    the balance of the total Consideration immediately before the             
    delivery of the first batch of the Facilities by China National           
    Aero-Technology.                                                          
                                                                              
    To guarantee the issuing of the Letters of Credit by Best