10:19     MAE HOLDINGS<00851>-Announcement&Resumption of Trading(6)           

    Arrangements will be made for the Rights Shares which                     
    would have otherwise been provisionally allotted to                       
    the Excluded Shareholders to be sold in the market                        
    in their nil-paid form as soon as practicable after                       
    dealings in the nil-paid Rights Shares commence on                        
    the Stock Exchange and in any event before the last                       
    date for acceptance of Rights Shares and payment, if                      
    a premium (net of expenses) can be obtained. The                          
    proceeds of each sale, less expenses and stamp duty,                      
    of HK$100 or more will be paid to the relevant Excluded                   
    Shareholder in Hong Kong dollars. The Company will                        
    retain individual amounts of less than HK$100 for the                     
    benefits of the Company.                                                  
                                                                              
    Subscription Price:                                                       
    HK$0.10 per Rights Share, payable in full when a                          
    Qualifying Shareholder accepts the provisional                            
    allotment of Rights Shares or applies for excess                          
    Rights Shares or when a transferee of nil-paid Rights                     
    Shares applies for the relevant Rights Shares.                            
                                                                              
    The Subscription Price represents:                                        
    (i)   a discount of approximately 61.5% to the                            
    closing price of HK$0.26 per Consolidated Share                           
    (based on the closing price of HK$0.013 per Existing                      
    Share as quoted on the Stock Exchange on the Last                         
    Trading Day and adjusted for the effect of the Share                      
    Consolidation);                                                           
                                                                              
    (ii)   a discount of approximately 65.0% to the                           
    average closing price of HK$0.286 per Consolidated                        
    Share (based on the average closing price of                              
    HK$0.0143 per Existing Share for the ten trading days                     
    ended on the Last Trading Day and adjusted for the                        
    effect of the Share Consolidation);                                       
                                                                              
    (iii)   a discount of approximately 44.4% to the                          
    theoretical ex-rights price of approximately HK$0.18                      
    per Consolidated Share (based on the closing price                        
    of HK$0.013 per Existing Share as quoted on the Stock                     
    Exchange on the Last Trading Day and adjusted for the                     
    effect of the Share Consolidation); and                                   
                                                                              
    (iv)   a premium of approximately 53.1% over the net                      
    asset value per Consolidated Share of HK$0.0653                           
    (based on the unaudited consolidated net asset value                      
    of the Group as at 31st October, 2004 and the then                        
    issued share capital of 3,953,200,000 Existing                            
    Shares and adjusted for the effect of the Share                           
    Consolidation).                                                           
                                                                              
    The Subscription Price was agreed based on arm's                          
    length negotiations between the Company and the                           
    Underwriter with reference to the market price of the                     
    Existing Shares prior to the Last Trading Day.                            
                                                                              
    Basis of provisional allotment:                                           
    One Rights Share in nil-paid form for every                               
    Consolidated Share to be held by a Qualifying                             
    Shareholder on the Record Date.                                           
                                                                              
    Status of the Rights Shares:                                              
    When issued and fully paid, the Rights Shares will                        
    rank pari passu in all respects with the then                             
    Consolidated Shares in issue. Holders of the                              
    fully-paid Rights Shares will be entitled to receive                      
    all future dividends and distributions which are                          
    declared, made or paid after the date of allotment                        
    and issue of the Rights Shares in their fully-paid                        
    form.                                                                     
                                                                              
    Share certificates:                                                       
    Subject to the fulfillment of the conditions of the                       
    Rights Issue, share certificates for all fully-paid                       
    Rights Shares will be posted on a date to be announced                    
    by the Company in due course.                                             
                                                                              
    Application for excess Rights Shares:                                     
    Qualifying Shareholders may apply for any unsold                          
    entitlements of the Excluded Shareholders and any                         
    Rights Shares provisionally allotted but not                              
    accepted by the Qualifying Shareholders or otherwise                      
    subscribed for by transferees of nil-paid Rights                          
    Shares. Application can be made by completing the EAF                     
    and lodging the same with appropriate remittance for                      
    the excess Rights Shares. The Directors will allocate                     
    the excess Rights Shares at their discretion and on                       
    a fair and equitable basis and will give preference                       
    to topping up odd lots to whole board lots.