09:53     LERADO GROUP<01225> - Announcement (3)                              

    customers; or (ii) by agreement between the parties based on reasonable   
    principle (e.g. having considered the costs of and the expected profits   
    generated from the goods), if no direct comparable market price can be    
    taken as a reference (e.g. in the event that the products concerned are   
    new inventions or have adopted some modifications which are not           
    available in the market and have not been offered by the Group to         
    third-party customers). Therefore, the Board (including the independent   
    non-executive Directors) considers that the Continuing Connected          
    Transactions contemplated under the Master Agreement will be entered      
    into in the ordinary course of business of the Group and on normal        
    commercial terms or on terms that are fair and reasonable so far as the   
    shareholders of the Company are concerned.                                
                                                                              
    4.        GENERAL                                                         
                                                                              
    The Group is principally engaged in the design, manufacture and trading   
    of infant products. Holy Baby is principally engaged in the wholesale of  
    consumer products.                                                        
                                                                              
    As at the date of this announcement, the Board comprises Mr. Huang Ying   
    Yuan, Mr. Chen Hsing Shin, Ms Huang Chen Li Chu, Mr. Leung Man Fai as     
    executive Directors and Mr. Lim Pat Wah Patrick, Mr. Yang Yu Fu and Mr.   
    Huang Zhi Wei as independent non-executive Directors.                     
                                                                              
    5.        DEFINITIONS                                                     
                                                                              
    In this announcement, unless the context otherwise requires, the          
    following expressions shall have the following meanings:                  
                                                                              
    "Board"        the board of Directors;                                    
                                                                              
    "Company"        Lerado Group (Holding) Company Limited, an exempted      
    company incorporated in Bermuda with limited liability and the Shares of  
    which are listed on the Main Board of the Stock Exchange;                 
                                                                              
    "connected         has the meaning ascribed to it in the                  
      person"        Listing Rules;                                           
                                                                              
    "Continuing         the supply of infant products, toys and               
      Connected         other products agreed by the parties from             
      Transactions"        time to time by Lerado China, Taiwan Company and   
    Lerado Overseas to Holy Baby;                                             
                                                                              
    "Directors"        the directors of the Company;                          
                                                                              
    "Group"        the Company and its subsidiaries;                          
                                                                              
    "Holy Baby"        (*), company incorporated in Taiwan with limited       
    liability;                                                                
                                                                              
    "Hong Kong"        the Hong Kong Special Administrative Region of the     
    People's Republic of China;                                               
                                                                              
    "Lerado China"        Lerado China Limited, a company incorporated in     
    the British Virgin Islands with limited liability;                        
                                                                              
    "Lerado         Lerado Overseas Limited, a company                        
      Overseas"        incorporated in the British Virgin Islands with        
    limited liability;                                                        
                                                                              
    "Listing Rules"        the Rules Governing the Listing of Securities on   
    the Stock Exchange;                                                       
                                                                              
    "Master         the agreement entered into between                        
      Agreement"        Lerado China, Taiwan Company and Lerado Overseas      
    dated 7 April 2005 pursuant to which Lerado China, Taiwan Company and     
    Lerado Overseas will supply infant products, toys and other products      
    agreed by the parties to Holy Baby on a regular basis;                    
                                                                              
    "Stock Exchange"        The Stock Exchange of Hong Kong Limited;          
                                                                              
    "substantial         has the meaning as given in theListing Rules;        
      shareholder"                                                            
                                                                              
    "Taiwan         (*), a company                                            
      Company"        incorporated in Taiwan with limited liability; and      
                                                                              
    "HK$"        Hong Kong dollar, the lawful currency of Hong Kong.          
                                                                              
                                                                              
    By order of the Board of                                                  
    Lerado Group (Holding) Company Limited                                    
    Huang Ying Yuan                                                           
    Chairman                                                                  
                                                                              
    Hong Kong, 11 April 2005