09:27     FOUR SEAS MER<00374> - Announcement (3)                             

    INFORMATION ON THE SELLER                                                 
    To the best of the Directors' knowledge, information and                  
    belief having made all reasonable enquiry, the Seller is                  
    currently subject to reorganisation procedure under the                   
    Japanese law and Toshiaki Higashibata, the trustee of the                 
    Seller, has been appointed as the representative director                 
    of the Seller on 31 October 2004 and whose duty is to                     
    implement the reorganisation plan of the Seller, and to the               
    best of the Directors' knowledge, information and belief                  
    having made all reasonable enquiry, the Seller and its                    
    ultimate beneficial owners are independent of the Company                 
    and its connected persons (as defined in the Listing Rules).              
                                                                              
    INFORMATION ON THE TARGET GROUP                                           
    The Target Company was incorporated in Hong Kong on 1 June                
    1993 and is principally engaged in investment holding.                    
                                                                              
    According to the audited and unaudited accounts of the                    
    Target Company, Restaurant Shiki and New Kondo for the two                
    financial years ended 15 June, 2003 and 15 June, 2004                     
    respectively, the net profits (both before and after                      
    taxation and extraordinary items) attributable to the                     
    entire issued share capital of each of the Target Company,                
    Restaurant Shiki and New Kondo were as follows:-                          
    For the financial year ended 15 June, 2003 Audited                        
    For the financial year ended 15 June, 2004 Unaudited                      
                                                                              
    The Target Company                                                        
    Restaurant Shiki                                                          
    New Kondo                                                                 
    The Target Company                                                        
    Restaurant Shiki                                                          
    New Kondo                                                                 
                                                                              
       HK$      HK$      HK$      HK$      HK$      HK$                       
                                                                              
    Net profits (before taxation and extraordinary items)                     
    (22,521)   (300,787)   1,887,628      (23,834,864)                        
    (114,128)   3,725,928                                                     
                                                                              
    Net profits (after taxation and extraordinary items)                      
    (22,521)   (300,787)   1,483,936      (23,834,864)                        
    (114,128)   2,955,928                                                     
                                                                              
    Further, according to the unaudited accounts of the Target                
    Company as at 15 June 2004, a total provision for loans of                
    HK$23,797,107 to the fellow subsidiaries of the Target                    
    Company and the Seller, which is expected to be incidental                
    and non-recurring, has been made. Although no consolidated                
    accounts of the Target Group has been prepared and provided               
    to the Company, the Board is of the view that the                         
    consolidated adjustments to the unaudited accounts of each                
    of the Target Company, Restaurant Shiki and New Kondo  as                 
    at 15 June 2004 are not material.                                         
                                                                              
    Restaurant Shiki, being a wholly-owned subsidiary of the                  
    Target Company, was incorporated in Hong Kong on 10 June                  
    1975 and is principally engaged in the operation of a                     
    Japanese restaurant and New Kondo, being a wholly-owned                   
    subsidiary of Restaurant Shiki, was incorporated in Hong                  
    Kong on 19 August 1993 and is principally engaged in trading              
    of Japanese food and beverages. The Subsidiaries are the                  
    only companies held by the Target Company as at 15 December               
    2004. The Target Group is in operation and the principal                  
    activities of the Target Group are mainly conducted in Hong               
    Kong. The Target Group will be wholly owned by the Company                
    upon Completion.