10:02     E2-CAPITAL<00378> - Announcement (2)                                

    take place after the expiry of the moratorium period                      
    on or after 22 January 2005 and Bigfield was required                     
    to obtain the approval of the Monetary Authority of                       
    Singapore to the proposed purchase of the Sale Shares                     
    by 24 January 2005 or such other date as the parties                      
    may agree in writing. The board, after consultation                       
    with its then legal adviser, was of the view that it                      
    was not necessary to disclose such agreement at that                      
    time. The Company is now aware that it has failed to                      
    inform the Exchange and disclose the Agreement as soon                    
    as possible after the Company entered into the                            
    Agreement in August 2004 and in the January                               
    Announcement according to the Listing Rules.                              
                                                                              
    In January 2005, conditions of the Agreement were                         
    fulfilled, and the 2nd Disposal was completed and                         
    effected through the broker of Goodwill and the broker                    
    of the buyer of the Sale Shares. The name of Bigfield                     
    was withheld in the January Announcement because the                      
    Company did not have the authorization from Bigfield                      
    to disclose its name. The Company has used its best                       
    endeavours to obtain the approval from the buyer's                        
    broker by contacting the buyer's broker by telephone                      
    and by e-mails but have received no reply whatsoever.                     
    The name of Bigfield is disclosed in this announcement                    
    after the Company has received enquiries from the                         
    Stock Exchange regarding the reason of the                                
    non-disclosure of the identity of the buyer in the                        
    January Announcement and the Company has sought                           
    further legal advice in this aspect. To the best of                       
    their knowledge, information and belief and having                        
    made all reasonable enquiry, the Directors confirmed                      
    that Bigfield and its ultimate beneficial owner(s)                        
    are not connected persons of the Company and are third                    
    parties independent of the Company and connected                          
    persons of the Company.                                                   
                                                                              
    After discussing the matter with the Exchange, the                        
    Company is required to re-calculate the five tests                        
    by aggregating the 1st and the 2nd Disposals using                        
    relevant data in August 2004. In this regard, the                         
    percentage ratios' resulting from both the                                
    consideration test, revenue test and the alternative                      
    profit test proposed by the Company have exceeded 25%                     
    but fell below 75%. Therefore, the 1st and the 2nd                        
    Disposals when added together would be a major                            
    transaction of the Company requiring shareholders                         
    approval under the Listing Rules. In the                                  
    circumstances, both the 1st and 2nd Disposals were                        
    subject to relevant major transaction requirements                        
    when the Company entered into the agreements on 6                         
    August 2004. The Company has not complied with major                      
    transaction requirements in respect of both the 1st                       
    and the 2nd Disposals. The Company will prepare and                       
    despatch to shareholders of the Company a circular                        
    on the basis that the 1st and the 2nd Disposals were                      
    aggregated as one major transaction.                                      
                                                                              
    As additional time is required to consolidate and                         
    compile information regarding the 1st and the 2nd                         
    Disposals, the despatch of the Circular will be                           
    postponed further. It is expected that the Circular                       
    will be despatched to the shareholders of the Company                     
    as soon as the contents are finalized and clearance                       
    is obtained from the Stock Exchange, which in any                         
    event, not later than 29 April 2005.                                      
                                                                              
    The Company has applied to the Stock Exchange for a                       
    waiver from strict compliance with Rule 14.38 of the                      
    Listing Rules to extend the date of despatch of the                       
    Circular to 29 April 2005.