09:57     START TECH<00706> - 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.                                                     
                                                                              
    START TECHNOLOGY COMPANY LIMITED                                          
    (incorporated in Bermuda with limited liability)                          
    (Stock code: 706)                                                         
                                                                              
    DISCLOSEABLE TRANSACTION                                                  
    ACQUISITION OF 30% INTERESTS IN LOTEN TECHNOLOGY CO.,                     
    LTD.                                                                      
                                                                              
    On 29 March 2005, the Company entered into the Sale                       
    and Purchase Agreement with the Vendors pursuant to                       
    which the Vendors have agreed to sell, and the Company                    
    has agreed to purchase, 30% interests in Loten at a                       
    consideration of RMB50,000,000 (equivalent to                             
    approximately HK$47,170,000) (subject to adjustment                       
    referred to below).                                                       
                                                                              
    Since the applicable ratio test is more than 5% but                       
    less than 25%, the Acquisition constitutes a                              
    discloseable transaction for the Company.                                 
                                                                              
    A circular containing further details of the                              
    Acquisition and the Group will be despatched to the                       
    shareholders of the Company as soon as possible.                          
                                                                              
    SALE AND PURCHASE AGREEMENT                                               
    Date    :       29 March 2005                                             
                                                                              
    Parties :       (a)     the Vendors (as vendors), holding                 
    directly or indirectly the entire interests in Loten                      
    immediately before the completion of the Acquisition.                     
                                                                              
    To the best of the Director's knowledge, information                      
    and belief having made all reasonable enquiry, each                       
    of the Vendors is an Independent Third Party not                          
    connected with the directors, chief executive or                          
    substantial shareholders of the Company or any of its                     
    subsidiaries or any of their respective associates                        
    (within the meaning of the Listing Rules)                                 
                                                                              
    (b)     the Company (as purchaser)                                        
                                                                              
    Subject matter of       :       30% interests in Loten                    
      the Sale and                                                            
      Purchase                                                                
      Agreement                                                               
                                                                              
    Completion      :       Completion of the Acquisition will                
    take place on the 45th day after the date of the Sale                     
    and Purchase Agreement or such other date as the                          
    parties may agree.                                                        
                                                                              
    Consideration                                                             
    The Consideration of RMB50,000,000 (equivalent to                         
    approximately HK$47,170,000) (subject to adjustment                       
    as referred to below) shall be paid by the Company                        
    in cash at completion of the Acquisition in full by                       
    its own internal resources. The Consideration was                         
    determined after arm's length negotiation between the                     
    Vendors and the Company and on normal commercial terms                    
    and taking into account of various factors, including                     
    the potential revenue contribution of Loten to the                        
    Group, the scope and quality of Loten's assets, the                       
    growth prospects of Loten, earnings potential and                         
    synergy opportunity with the Group and the terms of                       
    various commercial