10:27     ZJ PROSPECT<08273> - Announcement                                   

    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.               
                                                                              
    ZHEJIANG PROSPECT COMPANY LIMITED*                                        
    (a joint stock limited company incorporated in the People's Republic      
    of China with limited liability)                                          
                                                                              
    (Stock Code: 8273)                                                        
                                                                              
    CONTINUING CONNECTED TRANSACTIONS                                         
                                                                              
    On 29 March, 2005, the Company entered into the Electricity Agreement     
    with Zhejiang New Synthetic Fibre Company, a connected person (as         
    defined in the GEM Listing Rules), for the provision of electricity       
    to the Company for its production operation.                              
                                                                              
    As at the date of this announcement, Mr. Tang Li Min, who is an           
    executive Director, a promoter and a management shareholder of the        
    Company, holds 70.48% of the equity interests in Shaoxing Group which,    
    in turn, holds 57.14% equity interests in Zhejiang Liyuan Chemical        
    Fibre Limited (\raster(130%,p)="c02"). Zhejiang Liyuan Chemical           
    Fibre Limited (\raster(130%,p)="c02") in turn holds 70% of the equity     
    interests of Zhejiang New Synthetic Fibre Company. Accordingly,           
    Zhejiang New Synthetic Fibre Company is a connected person of the         
    Company pursuant to the GEM Listing Rules and the entering into the       
    Electricity Agreement constitutes continuing connected transaction        
    of the Company under chapter 20 of the GEM Listing Rules.                 
                                                                              
    As the maximum amount of the annual charges are expected to be less       
    than 25 per cent of the applicable percentage ratios of the Company       
    as specified in rule 19.07 of the GEM Listing Rules and is less than      
    HK$10 million, under rule 20.34 of the GEM Listing Rules, the             
    transactions are therefore subject to the reporting and announcement      
    requirements set out in rules 20.45 to 20.47 of the GEM Listing Rules     
    and are exempt from the independent shareholders' approval                
    requirements. The Company is required to publish this announcement        
    and include details of the Electricity Agreement in the next published    
    annual report and accounts of the Company.                                
                                                                              
    By Order of the Board                                                     
    Zhejiang Prospect Company Limited*                                        
    Mr. Tang Li Min                                                           
    Chairman                                                                  
                                                                              
    Zhejiang Province, the People's Republic of China                         
    29 March, 2005                                                            
                                                                              
    As at the date of this announcement, Mr. Tang Li Min, Mr. Hong Guo        
    Ding, Mr. Fei Guo Yang and Mr. Hong Chun Qiang are executive Directors;   
    Mr. Tang Cheng Fang and Mr. Li Zhang Rui are non-executive Directors;     
    and Mr. Wang He Rong, Mr. Lu Guo Qing and Mr. Ma Hong Ming are            
    independent non-executive Directors.                                      
                                                                              
    The  above  announcement  is a summary only. For the full version         
    of this  announcement, please refer to the 'Latest Company                
    Announcements' page on the GEM website at www.hkgem.com.                  
                                                                              
    * For identification purpose only