09:55     TAKSON HOLDINGS<00918> - Announcement (6)                           

    (ix)        the obligations of the Underwriter under the Underwriting     
    Agreement becoming unconditional and the Underwriting Agreement not       
    being terminated in accordance with its terms; and                        
                                                                              
    (x)        if required, the Bermuda Monetary Authority granting the       
    consent to the issue of Rights Shares on or before 26 April 2005.         
                                                                              
    WARNING OF THE RISKS OF DEALING IN SHARES AND NIL-PAID RIGHTS SHARES      
                                                                              
    Existing Shares will be dealt with on an ex-rights basis from Tuesday,    
    19 April 2005. To qualify for the Rights Issue, a Qualifying              
    Shareholder's name must appear on the register of members of the Company  
    on the Record Date, which is currently expected to be Tuesday, 26 April   
    2005. In order to be registered as members on the Record Date, any        
    transfer of Shares (with the relevant share certificates) must be lodged  
    for registration by 4:00 p.m. on Wednesday, 20 April 2005.                
                                                                              
    The Rights Shares will be dealt with in nil-paid form from Friday, 29     
    April to Monday, 9 May 2005, both days inclusive. Such dealings will      
    take place when the conditions to which the Rights Issue is subject       
    remains unfulfilled and if the Underwriter terminates the Underwriting    
    Agreement, or the conditions of the Rights Issue are not fulfilled, the   
    Rights Issue will not proceed.                                            
                                                                              
    Any person dealing in the Shares during the period from today to the      
    date on which all the conditions are fulfilled and any person dealing in  
    the Rights Shares in their nil-paid form from Friday, 29 April to         
    Monday, 9 May 2005 will accordingly bear the risk that the Rights Issue   
    may not proceed. Any person contemplating selling or purchasing the       
    Shares and/or the Rights Shares in their nil-paid form is recommended to  
    consult his/her own professional adviser.                                 
                                                                              
    EFFECTS ON SHAREHOLDING STRUCTURE                                         
                                                                              
    The following is the shareholding structure of the Company before and     
    after completion of the Rights Issue:)                                    
                                                                              
                            After completion                                  
                            of the Rights Issue                               
                    Immediately after        (assuming no Qualifying          
                    completion of the          Shareholder takes up its       
                     Rights Issue (assuming        Rights Shares, except      
    that                                                                      
                     all Qualifying        the Underwriter                    
                    Shareholders take up        takes up all its              
            Before completion         their Rights         entitlement under  
                                                                              
            of the Rights Issue        Shares in full)        the Rights      
    Issue)                                                                    
            Shares                %                Shares                %    
            Shares                %                                           
                            (approximate)                                     
    (approximate)                                (approximate)                
                                                                              
    Underwriter*                                                              
            27,776,400                5.94%                                   
    Controlling Shareholder*        250,618,000                64.34%         
            300,741,600                64.34%                300,741,600      
            64.34%                                                            
    Public        138,882,000                35.66%                           
    166,658,400                35.66%                138,882,000              
    29.72%                                                                    
    Total        389,500,000                100.00%                           
    467,400,000                100.00%                467,400,000             
    100.00%                                                                   
                                                                              
    (*Note: The Underwriter is an associate of Mr. Takson WONG Tek Sun (as    
    defined in the Listing Rule) who is also defined as the Controlling       
    Shareholder in this announcement)                                         
                                                                              
    USE OF PROCEEDS                                                           
                                                                              
    The estimated net proceeds of the Rights Issue, after deducting           
    estimated aggregated expenses of approximately HK$0.49 million, are       
    approximately HK$7.3 million. The Company intends to use the net          
    proceeds from the Rights Issue for further expansion of the               
    licensee/manufacturing business of the Group and in particular, for       
    better strengthening the Group's cash flow following the RMB5.5 million   
    (or approximately HK$5.2 million) capital injection requirement in        
    respect of the Company's joint venture with Chongqing Union-4 Garment     
    Manufacturing Company Limited in the People's Republic of China, details  
    of which were announced by the Company on 23 February 2005 and for        
    general working capital. There are currently no plans to make any other   
    capital investments.