09:31     NEW WORLD CHINA<00917> - Announcement (2)                           

    The Rights Shares accepted and paid for by NWD represent the number       
    of Rights Shares which NWD had undertaken to accept in the Rights         
    Issue pursuant to the terms of the Underwriting Agreement. As a           
    result of the under-subscription of the Rights Shares, NWD has            
    performed its obligations under the Underwriting Agreement by             
    subscribing for 375,351,879 Rights Shares in accordance with the          
    terms of the Underwriting Agreement. Accordingly, NWD, together           
    with parties acting in concert with it, is interested in                  
    3,032,258,906 Shares upon completion of the Rights Issue,                 
    representing approximately 80.64% of the issued share capital of          
    the Company as enlarged by the Rights Issue, which is a breach of         
    the minimum public float requirement under Rule 8.08 of the Listing       
    Rules.                                                                    
                                                                              
    It is the intention of the Company and NWD to maintain the listing        
    of the Company after the Rights Issue. Accordingly, NWD and its           
    directors have jointly and severally undertaken to the Stock              
    Exchange that the Company and NWD will take appropriate steps,            
    including, but not limited to, placing down NWD's shareholdings           
    in the Company as soon as practicable after the completion of the         
    Rights Issue to ensure the number of Shares held by the public at         
    all times is in compliance with the minimum public float                  
    requirement under Rule 8.08 of the Listing Rules. The Company has         
    been informed by NWD that NWD is in discussion with institutional         
    investors to place down its shareholdings in the Company.                 
                                                                              
    The Stock Exchange has stated that it will closely monitor the            
    trading of the Shares when less than 25% of Shares are held by the        
    public (as defined in the Listing Rules). If the Stock Exchange           
    believes that (i) a false market exists or may exist in the trading       
    of the Shares; or (ii) there are insufficient Shares in public            
    hands to maintain an orderly market, it will consider exercising          
    its discretion to suspend trading in the Shares on the Stock              
    Exchange until a level of sufficient public float is attained.            
                                                                              
    EXCESS APPLICATION                                                        
                                                                              
    Regarding the 238 valid applications for 12,366,632 Rights Shares         
    applied for by way of excess application, the Directors have              
    resolved to allot on full basis, from among the Rights Shares             
    allotted provisionally but not accepted, to the applicants such           
    number of Rights Shares which they have applied.                          
                                                                              
    The Directors consider the allocation of the excess Rights Shares         
    is on a fair and reasonable basis.                                        
                                                                              
    SHAREHOLDING STRUCTURE OF THE COMPANY                                     
                                                                              
    The following is a table showing the changes in shareholding              
    structure of the Company prior to and immediately following the           
    Rights Issue has become unconditional:                                    
                                                                              
    Immediately before the Rights Issue has become unconditional              
    Immediately after the Rights Issue has become unconditional               
                                                                              
    Number of Shares                                                          
    %                                                                         
    Number of Shares                                                          
    %                                                                         
                                                                              
    NWD                                                                       
    1,015,053,093                                                             
    67.46                                                                     
    2,912,984,610                                                             
    77.47                                                                     
                                                                              
    Subsidiaries of NWD                                                       
    39,054,507                                                                
    2.60                                                                      
    63,874,170                                                                
    1.70                                                                      
                                                                              
    Directors                                                                 
    14,720,126                                                                
    0.98                                                                      
    55,400,126                                                                
    1.47                                                                      
                                                                              
    Sub-total of NWD and its associates                                       
    1,068,827,726                                                             
    71.04                                                                     
    3,032,258,906                                                             
    80.64