10:10     LUKS IND(GROUP)<00366> - Announcement (3)                           

    reached the maximum capacity of the existing plant. It is                 
    anticipated that after the completion of the installation of              
    the Facilities at the plant of Luks Cement (Vietnam), the maximum         
    capacity of producing  clinkers and cement of the Group is                
    expected to be increased by approximately 500,000 tonnes per              
    annum representing approximately 60% increase and thus enhance            
    the Group's earning base.                                                 
                                                                              
    The Board considers that the transaction is on normal commercial          
    terms and the terms and conditions of the Agreement to be fair            
    and reasonable and are in the interests of the Company and the            
    Shareholders as a whole.                                                  
                                                                              
    GENERAL                                                                   
                                                                              
    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.                                      
                                                                              
    DEFINITIONS                                                               
                                                                              
    "Agreement"     the agreement entered into between Best Deluxe            
    Assets and China National Aero-Technology on 23rd March 2005              
    for the purchase of the Facilities of a 1750TPD (tonnes per day)          
    clinkers' (semi-finished cement products) production line to              
    be installed in the  plant of Luks Cement (Vietnam) in Vietnam            
                                                                              
    "Best Deluxe Assets"    Best Deluxe Assets Limited, a limited             
    company incorporated in the British Virgin Islands and a wholly           
    owned subsidiary of the Company, with its registered office at            
    Offshore Incorporations Limited, P.O. 957, Offshore                       
    Incorporations Centre, Road Town, Tortola, British Virgin                 
    Islands.                                                                  
                                                                              
    "Board" the board of Directors                                            
                                                                              
    "Company"       Luks Industrial (Group) Limited, a company                
    incorporated in Bermuda with limited liability, the shares of             
    which are listed on the Stock Exchange                                    
                                                                              
    "China National China National Aero-Technology Import & Export            
      Aero-Technology"      Corporation Beijing Company (*), a company        
    incorporated in PRC with its registered                                   
    office at 19/F., CATIC PLAZA, 18 Beichen Dong Street, Chaoyang            
    District, Beijing, 100101 China                                           
                                                                              
    "Consideration" US$10.709 million (approximately                          
    HK$83,530,200.00), the consideration to be paid for the Purchase          
    pursuant to the Agreement                                                 
                                                                              
    "Director(s)"   the director(s) of the Company                            
                                                                              
    "Facilities"    the equipments, machineries and parts in connection       
    with the clinkers' production line with details as set out in             
    the Agreement                                                             
                                                                              
    "First Letter of Credit"        the unconditional and irrevocable         
    Letter of Credit which Best Deluxe Assets will arrange with a             
    third party bank for the opening in favour of China National              
    Aero-Technology with validity period of 6 months from the date            
    of issue for the sum of US$3,748,150.00 (approximately                    
    HK$29,235,570.00)                                                         
                                                                              
    "Group" the Company and its subsidiaries                                  
                                                                              
    "HKSAR" the Hong Kong Special Administrative Region of the                
    People's Republic of China                                                
                                                                              
    "Letters of Credit"     the First Letter of Credit and the Second         
    Letter of Credit