09:54     TAKSON HOLDINGS<00918> - Announcement (2)                           

    The Company will send a provisional allotment letter and an excess        
    Rights Shares application form to each of the Qualifying Shareholders     
    only. To qualify for the Rights Issue, a Shareholder must:                
                                                                              
    -        be registered as a member of the Company on the Record Date;     
    and                                                                       
                                                                              
    -        have an address in Hong Kong appeared on the register of         
    members of the Company.                                                   
                                                                              
    In order to be registered as a member of the Company on the Record Date,  
    Shareholders must lodge any transfers of Shares (together with the        
    relevant share certificates) with the Company's branch share registrar    
    in Hong Kong by 4:00 p.m. on 20 April 2005.                               
                                                                              
    The Company's branch share registrar is:                                  
                                                                              
    Abacus Share Registrars Limited                                           
    Ground Floor                                                              
    Bank of East Asia Harbour View Centre                                     
    56 Gloucester Road, Wanchai                                               
    Hong Kong                                                                 
                                                                              
    The register of members of the Company will be closed from 21 April to    
    26 April 2005, both dates inclusive, for the purpose of determining the   
    entitlements of Shareholders under the Rights Issue. No transfer of       
    Shares will be registered during this period.                             
                                                                              
    Subscription Price:                                                       
                                                                              
    HK$0.10 per Rights Share, payable in full by Qualifying Shareholders      
    upon acceptance of the provisional allotment of the Rights Shares or      
    application for excess Rights Shares.                                     
                                                                              
    The Subscription Price of HK$0.10 per Rights Share was arrived at after   
    arm's length negotiations between the Company and the Underwriter with    
    reference to the recent closing prices of the Shares on the Stock         
    Exchange and represents                                                   
                                                                              
    (i)        a discount of approximately 37.5 per cent. to the closing      
    price of HK$0.16 per Share quoted on the Stock Exchange on the Last       
    Trading Day;                                                              
                                                                              
    (ii)        a discount of approximately 33.3 per cent. to the             
    theoretical ex-rights price of HK$0.15 per Share based on such closing    
    price;                                                                    
                                                                              
    (iii)        a discount of approximately 37.3 per cent. to the average    
    closing price of HK$0.1595 per Share quoted on the Stock Exchange on the  
    last ten trading days up to and including the Last Trading Day; and       
                                                                              
    (iv)        a discount of approximately 24.8 per cent. to the             
    consolidated net asset value of approximately HK$0.133 per Share          
    calculated on the basis of the consolidated net asset value of the Group  
    of about HK$51.974 million as at 30 September 2004 referred to in the     
    interim report of the Company for the six months ended 30 September       
    2004.                                                                     
                                                                              
    The Rights Shares have a nominal value of HK$0.10 each.                   
                                                                              
    The Directors consider (a) the terms of the Rights Issue to be fair and   
    reasonable and in interests of the Company and its Shareholders as a      
    whole; and (b) the discounts of the Subscription Price as set out above   
    should better enable Shareholders to participate in the Rights Issue as   
    Shareholders could subscribe the Rights Shares at a considerable          
    discount to the various market prices set out above.                      
                                                                              
    Status of the Rights Shares:                                              
                                                                              
    When fully paid, issued and allotted, the Rights Shares will rank         
    equally with all the existing Shares. Holders of fully paid Rights        
    Shares will receive all future dividends and distributions which are      
    declared, made or paid after the completion of the Rights Issue.          
                                                                              
    Expected Timetable:                                                       
    2005                                                                      
                                                                              
    Last day of dealings in the Shares on a cum-rights basis        Monday,   
    18 April                                                                  
                                                                              
    First day of trading in Shares on an ex-rights basis        Tuesday, 19   
    April                                                                     
                                                                              
    Latest time for lodging transfer of Shares in                             
      order to be qualified for the Rights Issue        4:00 p.m. on