16:33     INNO-TECH HOLD<08202> - 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.                                                     
                                                                              
    INNO-TECH HOLDINGS LIMITED                                                
    (Incorporated in Bermuda with limited liability)                          
    (Stock Code: 8202)                                                        
                                                                              
    ISSUE OF NEW SHARES UNDER GENERAL MANDATE                                 
                                                                              
    On 30 March 2005, the Company entered into                                
    Subscription Agreements with the Subscribers in                           
    relation to the subscription of an aggregate of                           
    42,000,000 Shares at the subscription price of HK$0.05                    
    per Subscription Share. Each of the Subscribers is                        
    an Independent Third Party.                                               
                                                                              
    The Subscription Price was arrived at after arm's                         
    length negotiations between the Company and the                           
    Subscribers and represents (i) a premium of                               
    approximately 6.38% to the closing price of HK$0.047                      
    per Share as quoted on the GEM on 30 March 2005, being                    
    the date of the Subscription Agreements; (ii) a                           
    premium of approximately 2% to the average closing                        
    price of approximately HK$0.049 per Share as quoted                       
    on the GEM for the five trading days immediately                          
    preceding the date of the Subscription Agreements;                        
    and (iii) a premium of approximately 2% to the average                    
    closing price of approximately HK$0.049 per Share as                      
    quoted on the GEM for the ten trading days up to and                      
    including the date of the Subscription Agreements.                        
                                                                              
    The Subscription Shares represent (i) approximately                       
    8.57% of the issued share capital of the Company as                       
    at 30 July 2004, the date of the granting of the general                  
    mandate to the Directors; (ii) approximately 7.7% of                      
    the existing issued share capital of the Company as                       
    at the date of the Subscription Agreements and the                        
    date of this announcement respectively; and (iii)                         
    approximately 7.16% of the issued share capital of                        
    the Company as enlarged by the Subscription Shares.                       
                                                                              
    The net proceeds from the Subscription of                                 
    approximately HK$2.1 million will be applied for                          
    general working capital of the Group.                                     
                                                                              
    The Directors consider that the Subscription Price                        
    and the terms of the Subscription Agreement to be fair                    
    and reasonable and are in the interests of the                            
    Shareholders as a whole.                                                  
                                                                              
    As at the date of this announcement, the Board                            
    comprises:                                                                
                                                                              
    Executive Directors:                                                      
    Ms. Wong Yuen Yee (Chairman)                                              
    Mr. Wong Kwok Sing (Deputy Chairman)                                      
    Mr. Wong Yao Wing, Robert                                                 
    Mr. Lam Shiu San                                                          
                                                                              
    Independent non-executive Directors:                                      
    Mr. Wong Tak Leung, Charles                                               
    Ms. Wu Wai Yee, Annis                                                     
    Ms. Ho Chui Yin, Liwina                                                   
                                                                              
    By order of the Board                                                     
    Inno-Tech Holdings Limited                                                
    Wong Yuen Yee                                                             
    Chairman                                                                  
                                                                              
    Hong Kong, 30 March 2005