09:56     WAI YUEN TONG<00897> - Announcement (2)                             

    necessary duties, costs and commission to the Property Agent).            
                                                                              
    Terms   :       Pursuant to the Agreement, the Vendor and the Purchaser   
    agree that the Vendor will sell and the Purchaser will purchase           
    the Property.                                                             
                                                                              
                    The Agreement is not subject to any conditions precedent. 
                                                                              
                    The Vendor and the Purchaser will enter into a formal     
    agreement for sale and purchase of the Property on or before              
    21 April 2005. Completion of the sale and purchase shall take             
    place on or before 24 May 2005.                                           
                                                                              
                    The Vendor agrees to deliver vacant possession of the     
    Property upon Completion.                                                 
                                                                              
                    The Vendor is required to prove good title to the         
    Property.                                                                 
                                                                              
                    In consideration for the services rendered by the Property
    Agent, the Property Agent shall receive commission in the amount          
    of HK$130,000 from the Vendor.                                            
                                                                              
    USE OF PROCEEDS                                                           
                                                                              
    The net proceeds from the Disposal is approximately                       
    HK$12,700,000 out of which a proportion will be applied for fully         
    repaying the bank loan secured by the Property, currently                 
    amounting to approximately HK$7,500,000, and the remaining                
    balance will be used as the Group's working capital.                      
                                                                              
    REASONS FOR THE DISPOSAL                                                  
                                                                              
    While the Group is principally engaged in business in the                 
    pharmaceutical field, the Property was originally acquired as             
    an investment property. Having regard to the upturn of the Hong           
    Kong economy and the property market, the Board considers the             
    terms of the Disposal are fair and reasonable and the Disposal            
    is made in the best interest of the Shareholders.                         
                                                                              
    INFORMATION ON THE GROUP                                                  
                                                                              
    The Group is principally engaged in the production and sale of            
    (i) traditional Chinese medicine which includes Chinese                   
    medicinal products sold under the brand name of "Wai Yuen Tong"           
    and a range of products manufactured by selected medicinal                
    materials with traditional prescription, mainly in the People's           
    Republic of China and Hong Kong; and (ii) western pharmaceutical          
    products under the brand name of "Madame Pearl's". The Group              
    has diversified into the business of property investment but              
    will focus on its business in the pharmaceutical field.                   
                                                                              
    GENERAL                                                                   
                                                                              
    As at date of this announcement,                                          
                                                                              
    (a)     the executive Directors of the Company are Mr. Tang Ching         
    Ho and Mr. Chan Chun Hong, Thomas;                                        
                                                                              
    (b)     the non-executive Director of the Company is Mr. Leung Wai        
    Ho; and                                                                   
                                                                              
    (c)     the independent non-executive Directors of the Company are        
    Mr. Siu Man Ho, Simon, Mr. Yuen Chi Choi and Mr. Cho Wing Mou.            
                                                                              
    The Disposal constitutes a discloseable transaction for the               
    Company under the Listing Rules. A circular containing details            
    of the Disposal will be sent to the shareholders of the Company           
    as soon as possible.