10:22     KANTONE HOLDING<01059>-Announcement&Resumption of Trading-12        

    to the date of the Subscription Agreement) in respect                     
    of the Tranche 1 Bonds; and (ii) the Tranche 2 Bonds                      
    Closing Date in respect of the Tranche 2 Bonds, both                      
    subject to adjustment                                                     
                                                                              
    "Floating Conversion Price"     the conversion price of                   
    the Bonds which is set at 93 per cent. of the average                     
    of any 5 consecutive closing prices per Share as                          
    selected by CSFB during the 30 consecutive business                       
    days immediately prior to the date on which notice                        
    of CSFB is received by the Company                                        
                                                                              
    "Group" the Company and its subsidiaries                                  
                                                                              
    "Hong Kong"     the Hong Kong Special Administrative                      
    Region of the People's Republic of China                                  
                                                                              
    "Listing Rules" the Rules Governing the Listing of                        
    Securities on the Stock Exchange                                          
                                                                              
    "Original Tranche 1 Bonds"      convertible bonds with                    
    an aggregate principal amount of US$8,000,000 due                         
    2008 to be issued by the Company, the principal terms                     
    of which are set out in the section headed "Principal                     
    terms of the Bonds" of this announcement                                  
                                                                              
    "Original Tranche 1 Bonds Closing Date" 1 April                           
    2005, being the date on which the Original Tranche                        
    1 Bonds were issued                                                       
                                                                              
    "Relevant Exchange Rate"        the exchange rate of                      
    US$1.00 to HK$7.7995 as reported by Bloomberg on page                     
    "HKD Currency HP" at 5:00 p.m. (Hong Kong time) on                        
    31 March 2005, being the day immediately preceding                        
    the date of the Subscription Agreement                                    
                                                                              
    "Share(s)"      ordinary share(s) of HK$0.10 each in the                  
    capital of the Company                                                    
                                                                              
    "Stock Exchange"        The Stock Exchange of Hong Kong                   
    Limited                                                                   
                                                                              
    "Subscription Agreement"        the agreement dated 1 April               
    2005 entered into between the Company and CSFB                            
    relating to the subscription of the Bonds                                 
                                                                              
    "Subscription Right"    the option granted by the                         
    Company to CSFB exercisable upon the issue of the                         
    Original Tranche 1 Bonds, the Additional Tranche 1                        
    Bonds and the Tranche 2 Bonds, for the subscription                       
    of such number of new Shares in accordance with the                       
    Subscription Agreement                                                    
                                                                              
    "Tranche 1 Bonds"       the Original Tranche 1 Bonds and                  
    the Additional Tranche 1 Bonds (if applicable)                            
                                                                              
    "Tranche 1 Maturity Date"       the third anniversary                     
    of the Original Tranche 1 Bonds Closing Date                              
                                                                              
    "Tranche 2 Bonds"       convertible bonds with an                         
    aggregate principal amount of up to US$8,000,000                          
    which are to be issued by the Company, the principal                      
    terms of which are set out in the section headed                          
    "Principal terms of the Bonds" of this announcement                       
                                                                              
    "Tranche 2 Bonds Closing Date"  the date on which the                     
    Tranche 2 Bonds are issued (if applicable)                                
                                                                              
    "Tranche 2 Maturity Date"       the third anniversary                     
    of the Tranche 2 Bonds Closing Date                                       
                                                                              
    Unless otherwise specified in this announcement,                          
    US$1.00 = HK$7.80. No representation is made that any                     
    amounts in US$ or HK$ could have been or could be                         
    converted at such a rate or at any other rates