10:22     KANTONE HOLDING<01059>-Announcement&Resumption of Trading-11        

    announcement.                                                             
                                                                              
    SUSPENSION AND RESUMPTION OF TRADING OF SHARES                            
    At the request of the Company, trading in the Shares                      
    was suspended on the Stock Exchange from 9:30 a.m.                        
    on 4 April 2005 pending release of this announcement.                     
    Trading in the Shares will resume at 9:30 a.m. on 8                       
    April 2005.                                                               
                                                                              
    DEFINITIONS                                                               
    Unless otherwise defined herein, capitalised terms                        
    used in this announcement shall have the following                        
    meanings.                                                                 
                                                                              
    "Additional Tranche 1 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                                                              
                                                                              
    "Additional Tranche 1 Bonds Closing Date"       the date                  
    on which Additional Tranche 1 Bonds are issued (if                        
    applicable)                                                               
                                                                              
    "Base Price"    the average closing prices per Share                      
    for the 30 consecutive business days immediately                          
    prior to (i) the date of the Subscription Agreement,                      
    being HK$0.3075, representing a discount of about                         
    8.21 per cent. over the closing price of HK$0.335 per                     
    Shares as at 31 March 2005 (the business day                              
    immediately prior 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                                                           
                                                                              
    "Bonds" the Tranche 1 Bonds and the Tranche 2 Bonds                       
    (if applicable)                                                           
                                                                              
    "business day"  any day on which the Stock Exchange                       
    is open for trading in securities in Hong Kong                            
                                                                              
    "CSFB"  Credit Suisse First Boston (Hong Kong)                            
    Limited, an independent third party which is not a                        
    connected person of the Company (as defined under the                     
    Listing Rules)                                                            
                                                                              
    "Company"       Kantone Holdings Limited, a company                       
    incorporated in the Cayman Islands with limited                           
    liability, the securities of which are listed on the                      
    Stock Exchange                                                            
                                                                              
    "Directors"     directors of the Company                                  
                                                                              
    "Existing General Mandate"      the general mandate (to                   
    issue or otherwise deal in 20 per cent. of the issued                     
    share capital of the Company as at the date of passing                    
    the resolution) granted to the Directors by the                           
    shareholders of the Company pursuant to an ordinary                       
    resolution passed at the annual general meeting of                        
    the Company held on 26 November 2004, pursuant to                         
    which a maximum of 461,668,293 new Shares may be                          
    issued as at the date of this announcement                                
                                                                              
    "Fixed Conversion Price"        the conversion price of the               
    Bonds into the Shares which is set at 125 per cent.                       
    of the average closing price per Share for the 30                         
    consecutive business days immediately prior to (i)                        
    the date of the Subscription Agreement, being                             
    HK$0.3075, which is equivalent to HK$0.3844 in this                       
    case, representing a premium of about 14.75 per cent.                     
    over the closing price of HK$0.335 per Shares as at                       
    31 March 2005 (the business day immediately prior