10:26     CHINNEY ALLI<00385> - Announcement (2)                              

    The table below illustrates the effects of the Capital Reorganisation     
    on the capital structure of the Company as at 31 December 2004:           
                                                                              
        After  After  After                                                   
      As at  Capital Reserve  Share Premium  Share                            
      31 December 2004  Cancellation  Cancellation  Consolidation             
      (Audited)                                                               
      HK$'000  HK$'000  HK$'000  HK$'000                                      
                                                                              
    Issued share capital  39,660  39,660  39,660  39,660                      
    Share premium account  568,986  568,986  -      -                         
    Capital reserve account  236,500  -  -  -                                 
    Accumulated losses  (708,335)  (471,835)  -     -                         
    Contributed surplus  -  -  97,151  97,151                                 
                  136,811  136,811  136,811  136,811                          
                                                                              
    Number of authorised                                                      
     shares  25,000,000,000  25,000,000,000  25,000,000,000  1,000,000,000    
    Authorised share capital  HK$250,000,000  HK$250,000,000                  
    HK$250,000,000  HK$250,000,000Nominal value per share  HK$0.01  HK$0.01   
     HK$0.01  HK$0.25Number of shares issued                                  
      and fully paid  3,965,994,984  3,965,994,984  3,965,994,984             
    158,639,799Issued share capital  HK$39,659,949  HK$39,659,949             
    HK$39,659,949  HK$39,659,949                                              
                                                                              
    Implementation of the Capital Reorganisation will not, by itself, alter   
    the underlying assets, liabilities or financial position of the Group     
    nor will the rights of the Shareholders, particularly with respect to     
    their proportional interests in the Company and voting rights, be         
    affected in any way.                                                      
                                                                              
    EXPECTED TIMETABLE                                                        
                                                                              
    The expected timetable for the Capital Reorganisation is as follows:      
                                                                              
    2005                                                                      
                                                                              
    Latest time for lodging proxy forms                                       
      for the Annual General Meeting  3:30 p.m. on Wednesday, 1 June          
                                                                              
    Annual General Meeting  3:30 p.m. on Friday, 3 June                       
                                                                              
    Effective date of the Capital Reorganisation  9:30 a.m. on Monday, 6      
    June                                                                      
                                                                              
    Dealings in New Shares to commence  Monday, 6 June                        
                                                                              
    Original counter for trading in Existing Shares                           
      (represented by Existing Share certificates)                            
      in board lots of 10,000 closes  9:30 a.m. on Monday, 6 June             
                                                                              
    Temporary counter for trading in New Shares                               
      (represented by Existing Share certificates)                            
      in board lots of 400 opens  9:30 a.m. on Monday, 6 June                 
                                                                              
    First day of free exchange of Existing Share                              
      certificates for New Share certificates  Monday, 6 June                 
                                                                              
    Original counter for trading in New Shares                                
      (represented by New Share certificates)                                 
      in board lots of 10,000 reopens  9:30 a.m. on Monday, 20 June           
                                                                              
    Parallel trading in New Shares                                            
      (represented by both Existing Share                                     
      and New Share certificates) begins  9:30 a.m. on Monday, 20 June        
                                                                              
    First day for the designated broker to stand                              
      in the market to provide matching services  Monday, 20 June             
                                                                              
    Temporary counter for trading in New Shares                               
      (represented by Existing Share certificates)                            
      in board lots of 400 closes  4:00 p.m. on Tuesday, 12 July              
                                                                              
    Parallel trading in New Shares                                            
      (represented by both Existing Share                                     
      and New Share certificates) ends  4:00 p.m. on Tuesday, 12 July         
                                                                              
    Last day for the designated broker to stand                               
      in the market to provide matching services  Tuesday, 12 July            
                                                                              
    Last day for free exchange of Existing Share