09:47     MEDTECH GROUP<01031> - Announcement (2)                             

    otherwise.                                                                
                                                                              
    FURTHER POSTPONEMENT OF DESPATCH OF CIRCULARS                             
    REGARDING (I) PROPOSED ACQUISITION OF THE ENTIRE                          
    INTEREST IN HANG HUO HOTEL COMPANY LIMITED; AND (II)                      
    PROPOSED DISPOSAL OF INTEREST IN AN ASSOCIATED                            
    COMPANY                                                                   
    The Company announces that the circular containing,                       
    among other things, (i) further details of the Hang                       
    Huo Hotel Acquisition and other disclosures in                            
    connection with the Hang Huo Hotel Acquisition                            
    together with the notice of special general meeting                       
    of the Company for considering and, if thought fit,                       
    for approving at the special general meeting of the                       
    Company, the Hang Huo Hotel Acquisition (the                              
    "Acquisition Particulars"); and (ii) further details                      
    of the Disposal and other disclosures in connection                       
    with the Disposal together with the notice of special                     
    general meeting of the Company for considering and,                       
    if thought fit, for approving at the special general                      
    meeting of the Company, the Disposal (the "Disposal                       
    Particulars") will be divided into two separate                           
    circulars one containing the Acquisition Particulars                      
    (the "Acquisition Circular") and another containing                       
    the Disposal Particulars (the "Disposal Circular").                       
    The Hang Huo Hotel Acquisition and the Disposal are                       
    not inter-conditional.                                                    
                                                                              
    In accordance with Rule 14.38 of the Listing Rules,                       
    the Acquisition Circular and the Disposal Circular                        
    have to be despatched to the Shareholders within 21                       
    days after the publication of the Company's                               
    announcement dated 19 January 2005, which is on or                        
    before 10 February 2005 and subsequently extended to                      
    a date falling on or before 31 March 2005. Given that                     
    additional time is required to prepare, among other                       
    things, the financial information required to be set                      
    out in the circulars including the accountants'                           
    report on Hang Huo Hotel (as the financial year end                       
    of Hang Huo Hotel falls on 31 December, time is                           
    required to complete the audit on Hang Huo Hotel for                      
    the year ended 31 December 2004) and the accountants'                     
    report on the remaining Group which will be prepared                      
    based on the Group's result for the year ended 31                         
    December 2004 which are expected to be released                           
    shortly (assuming completion of the Disposal), the                        
    despatch of the Acquisition Circular and the Disposal                     
    Circular to the Shareholders will be further                              
    postponed, and the Company has applied to the Stock                       
    Exchange for a waiver from strict compliance with Rule                    
    14.38 of the Listing Rules by extending the despatch                      
    date of the Acquisition Circular and the Disposal                         
    Circular to dates falling on or before 18 April 2005                      
    and 29 April 2005 respectively.                                           
                                                                              
    As at the date of this announcement, the executive                        
    Directors are Mr. Cheung Yu Shum, Jenkin, Mr. Chu Yuk                     
    Kuen, Mr. Wong Hin Shek, Hans, and Mr. Ng Tak Chak,                       
    Nelson, and the independent non-executive Directors                       
    are Mr. Shum Ka Hei, Mr. Chan Chi Yuen and Mr. Wong                       
    King Shiu, Daniel.                                                        
                                                                              
    By Order of the Board                                                     
    Medtech Group Company Limited                                             
    Wong Hin Shek, Hans                                                       
    Executive Director                                                        
                                                                              
    Hong Kong, 31 March 2005                                                  
                                                                              
    *  for identification purposes only