09:27     SINO-I TECH<00250> - Announcement (2)                               

    taxation credit and extraordinary items for the nine months ended         
    31 December 2003 were approximately HK$14,234,000 and                     
    HK$19,859,000 respectively. The net profit before and after               
    taxation and extraordinary items for the year ended 31 March              
    2003 were approximately HK$1,264,000 and HK$187,000                       
    respectively.                                                             
                                                                              
    (2)     CIMA Realty                                                       
                                                                              
    CIMA Realty is a company incorporated in the Philippines with             
    limited liability, 40% of the issued share capital of which is            
    owned by South Port and the remaining 60% of the issued stock             
    capital of which is beneficially owned by an independent third            
    party. CIMA Realty is principally engaged in property holding             
    whose sole asset is a parcel of land site having a gross area             
    of about 6,500 sq.m. held under Transfer Certificate of Title             
    No. 184100 of the office of the Register of Deeds for the City            
    of Manila. The Property is situated on this site which is leased          
    by CIMA Realty to Acesite (Phils.) Hotel for the operation of             
    the Manila Pavilion Hotel.                                                
                                                                              
    The audited net asset value of CIMA Realty (prepared in                   
    accordance with accounting principles generally accepted in the           
    Philippines) as at 31 March 2004 and 31 March 2003 were                   
    approximately HK$9,039,000 and HK$9,426,000 respectively. The             
    audited net profits of CIMA Realty before and after taxation              
    and extraordinary items (prepared in accordance with accounting           
    principles generally accepted in the Philippines) for the year            
    ended 31 March 2004 were approximately HK$206,000 and HK$140,000          
    respectively. The audited net profit before and after taxation            
    and extraordinary items (prepared in accordance with accounting           
    principles generally accepted in the Philippines) for the year            
    ended 31 March 2003 were approximately HK$244,000 and HK$238,000          
    respectively.                                                             
                                                                              
    (3)     Acesite                                                           
                                                                              
    Acesite is a company incorporated in the British Virgin Islands           
    and was the holder of 74,889,231 ordinary shares in Acesite               
    (Phils.) Hotel, representing 75% of its total issued stock                
    capital, which were mortgaged by Acesite in favour of a bank              
    as security for a loan facility granted to Genius Reward Company          
    Limited, an associate of the Company, 50% of the total issued             
    share capital of which is held by a wholly owned subsidiary of            
    the Company and the other 50% of which is held by an independent          
    third party. In February 2003, the bank purported to sell all             
    such mortgaged shares to a third party purchaser. Acesite                 
    initiated court proceedings ("Proceedings") against the bank              
    and that third party purchaser to contest the disposal and to             
    have the disposal declared null and void on the ground that the           
    bank, in its purported disposal of the mortgaged shares, is,              
    among other things, in breach of an earlier restructuring                 
    agreement and the mortgage, and hence such purported disposal             
    were considered unlawful. The claim of Acesite has been dismissed         
    and Acesite is appealing against the decision. Currently, the             
    legal action is pending before the Supreme Court in Manila.               
                                                                              
    Pursuant to the Agreement, Mr. Yu has personally guaranteed to            
    the Purchaser that, in the event that the purported disposal              
    of the mortgaged shares by the bank is not declared null and              
    void under the Proceedings; or no damages is ultimately awarded           
    by a court in respect of such purported disposal; or the damages          
    awarded are less than the total consideration of RMB212,000,000,          
    he shall, within 10 days from the date of the final judgment              
    or such other time period agreed between the Purchaser and him,           
    pay to the Purchaser the sum of RMB212,000,000 or the shortfall           
    between that sum and the damages awarded (as the case may be).            
    The Purchaser also irrevocably agreed that, if the circumstances          
    that trigger Mr. Yu's