09:46     SKYWORTHDIGITAL<00751> - 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.                   
                                                                              
    SKYWORTH DIGITAL HOLDINGS LIMITED                                         
    (Incorporated in Bermuda with limited liability)                          
    (Stock Code: 751)                                                         
                                                                              
    CLARIFICATION ANNOUNCEMENT                                                
                                                                              
    The Board wishes to clarify that the Company was not verbally or in       
    writing informed on 28 March 2005 by the Tax Authorities about the Tax    
    Inspection on 29 March 2005.                                              
                                                                              
    Reference is made to the announcement of the Company dated 30 March       
    2005 (the "Announcement") in which it was announced, among others, that   
    the release of the audited interim results for the six months ended 30    
    September 2004 and the despatch of the interim report of the Company      
    for the same period were postponed until further notice because certain   
    documents and accounting records that are essential for clarification     
    of certain outstanding matters discussed during the audit committee       
    meeting held on 29 March 2005 were collected from the Group by the Tax    
    Authorities on the same date for the purpose of carrying out tax          
    inspection. Capitalised terms used herein shall have the same meanings    
    as those defined in the Announcement unless the context otherwise         
    requires.                                                                 
                                                                              
    CLARIFICATION                                                             
                                                                              
    It was stated in the Announcement that the Company was verbally           
    informed on 28 March 2005 by the Tax Authorities that tax inspection      
    ("Tax Inspection") would be carried out on certain subsidiaries of the    
    Company in the PRC on 29 March 2005. In this regard, the Board wishes     
    to clarify that the Company was not verbally or in writing informed on    
    28 March 2005 by the Tax Authorities about the Tax Inspection on 29       
    March 2005. This mistake is due to miscommunication between the Group's   
    offices in Hong Kong and the PRC. The Tax Authorities actually served     
    the notices of inspection on certain subsidiaries of the Company in the   
    PRC in person on 29 March 2005 when the Tax Inspection was conducted on   
    the same date. To avoid the occurrence of similar incidents in future,    
    the directors of the Group's offices in Hong Kong and the PRC will        
    endeavour to ensure that they communicate with each other more            
    effectively.                                                              
                                                                              
    GENERAL                                                                   
                                                                              
    Trading in the shares of the Company has been suspended with effect       
    from 9:44 a.m. on 30 November 2004 and will remain suspended until        
    further notice.                                                           
                                                                              
    For and on behalf of the Board                                            
    Skyworth Digital Holdings Limited                                         
    Leung Chi Ching, Frederick                                                
    Executive Director                                                        
                                                                              
    Hong Kong, 31 March 2005                                                  
                                                                              
    As at the date of this announcement, the Board comprises Mr. Wang         
    Dianfu as executive Chairman of the Board, Ms. Ding Kai, Mr. Leung Chi    
    Ching, Frederick and Mr. Zhang Xuebin as executive Directors, Mr. Wong    
    Wang Sang, Stephen as non-executive Chairman of the Board, and Mr. So     
    Hon Cheung, Stephen, Mr. Li Weibin and Mr. Xie Zhengcai as independent    
    non-executive Directors.