09:40 LINEFAN TECH<08397> - Announcement The Stock Exchange of Hong Kong Limited takes no responsibility for the contents of this announcement, makes no representation as to its accuracy or completeness and expressly disclaims any liability whatsoever for any loss however arising from or in reliance upon the whole or any part of the contents of this announcement. LINEFAN TECHNOLOGY HOLDINGS LIMITED (Incorporated in the Cayman Islands with limited liability) (Stock Code: 8166) DESPATCH OF THE RIGHTS ISSUE DOCUMENTS IN RELATION TO THE RIGHTS ISSUE ON THE BASIS OF ONE RIGHTS SHARE FOR EVERY TWO CONSOLIDATED SHARES ADJUSTMENT TO THE SUBSCRIPTION PRICE AND THE NUMBER OF CONSOLIDATED SHARES OF THE OUTSTANDING SHARE OPTIONS Financial adviser KINGSTON CORPORATE FINANCE LIMITED DESPATCH OF THE RIGHTS ISSUE DOCUMENTS The Rights Issue Documents containing, among others, the details of the Rights Issue have been despatched to all Qualifying Shareholders on Wednesday, 13 April 2005. Based on the register of members of the Company as at 4:00 p.m. on Thursday, 31 March 2005, the Record Date, there were no Excluded Shareholders. Accordingly, all the Shareholders were Qualifying Shareholders. ADJUSTMENT TO THE SUBSCRIPTION PRICE AND THE NUMBER OF CONSOLIDATED SHARES OF THE OUTSTANDING SHARE OPTIONS According to the terms and conditions of the Share Option Scheme pursuant to which the Share Options were granted, the Share Consolidation and the issue of the Rights Shares will cause an adjustment to the subscription price and the number of Consolidated Shares to be issued under the Share Options. The adjustment to the outstanding Share Options is set out in this announcement. By order of the Board Linefan Technology Holdings Limited Wang Yong Chairman Hong Kong, 13 April 2005 As at the date of this announcement, the Board comprises: Mr. Wang Yong (Chairman and Executive director) Ms. Ma Gui Fang (Executive director) Mr. Zhu Guang Bo (Executive director) Mr. Chan, Peter Yat-Tung (Independent non-executive director) Mr. Feng Jue Min (Independent non-executive director) Mr. Zhang Gong (Independent non-executive director) This announcement, for which the Directors collectively and individually accept full responsibility, includes particulars given in compliance with the GEM Listing Rules for the purpose of giving information with regard to the Company. The Directors, having made all reasonable enquiries, confirm that, to the best of their knowledge and belief (i) the information contained in this announcement is accurate and complete in all material respects and not misleading; (ii) there are no other matters the omission of which would make any statement in this announcement misleading; and (iii) all opinions expressed in this announcement have been arrived at after due and careful consideration and are founded on bases and assumptions that are fair and reasonable. The above announcement is a summary only. For the full version of this announcement, please refer to the open code "Latest Company Announcements" page on the GEM website at www.hkgem.com. Trading in the nil paid Rights in the ordinary shares of Linefan Technology Holdings Limited will commence at 9:30 a.m. on Friday, 15/04/2005 under the following particulars (FORCE MAJEURE WARNING: These rights are conditional): - Stock Code Stock Short Name Board Lot ---------- ---------------- --------- 8398 LINEFANTECH RTS 10,000 shares