10:59     K. WAH INT'L<00173>K. WAH CONS<00027>-Joint Ann & Resumed-1         

    THIS ANNOUNCEMENT IS FOR INFORMATION ONLY. IT IS NOT AN OFFER TO          
    ACQUIRE, SUBSCRIBE, PURCHASE OR DISPOSE OF SECURITIES NOR IS IT           
    CALCULATED TO INVITE ANY SUCH OFFERS                                      
                                                                              
    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 howsoever arising from or in            
    reliance upon the whole or any part of the contents of this               
    announcement.                                                             
                                                                              
    K. WAH INTERNATIONAL HOLDINGS LIMITED                                     
    (incorporated in Bermuda with limited liability)                          
    (Stock Code: 173)                                                         
                                                                              
    K. WAH CONSTRUCTION MATERIALS LIMITED                                     
    (incorporated in Hong Kong with limited liability)                        
    (Stock Code: 27)                                                          
                                                                              
    POSSIBLE ACQUISITION OF 88.1% OF THE VOTING SHARES CARRYING 97.9%         
    OF THE ECONOMIC INTEREST IN                                               
                                                                              
    GALAXY CASINO S.A.                                                        
                                                                              
    CONNECTED TRANSACTION AND VERY SUBSTANTIAL ACQUISITION FOR AND            
    CHANGE OF NAME OF                                                         
    K. WAH CONSTRUCTION MATERIALS LIMITED                                     
                                                                              
    AND                                                                       
                                                                              
    CONNECTED TRANSACTION, DEEMED VERY SUBSTANTIAL DISPOSAL AND VERY          
    SUBSTANTIAL ACQUISITION FOR                                               
    K. WAH INTERNATIONAL HOLDINGS LIMITED                                     
                                                                              
    Financial adviser to K. Wah Construction Materials Limited                
    UBS Investment Bank                                                       
                                                                              
    The Acquisition                                                           
                                                                              
    Canton Treasure, a wholly-owned subsidiary of KWCM, agreed                
    conditionally on 14th March, 2005 to acquire an economic interest         
    of 73.6% in Galaxy from Family Companies and a further economic           
    interest of 24.3% from the Minority Vendors for an aggregate              
    Purchase Price of HK$18,405,198,023. The Purchase Price is to be          
    satisfied as to HK$14,724,158,420 by the issue to the Vendors of          
    1,840,519,798 new KWCM Shares at HK$8.00 per KWCM Share and as to         
    HK$3,681,039,603 by the issue to the Vendors of FRNs or, at the           
    sole discretion of KWCM, FRNs and/or cash to the aggregate value          
    of HK$3,681,039,603. The Consideration KWCM Shares represent              
    about 141.9% of the existing issued share capital of KWCM and about       
    58.7% of the enlarged issued share capital of KWCM immediately            
    after Completion (assuming that there will be no change in its            
    issued share capital from the date of this announcement to                
    Completion save for the issue of the Consideration KWCM Shares at         
    Completion). The market value of the Consideration KWCM Shares            
    (based on the closing price per KWCM Share of HK$8.50 on the Last         
    Dealing Date) is HK$15,644,418,283. KWCM may finance part or all          
    of the Purchase Price that it elects to pay in cash rather than           
    FRNs through the issue and placing of additional new KWCM Shares.         
    The timing and terms of such issue and placing (if any) of new KWCM       
    Shares have yet to be decided.                                            
                                                                              
    Galaxy is a company incorporated in Macau. It holds one of only           
    three gaming concessions awarded by the Macau government to               
    operate casinos in Macau and currently operates Galaxy Casino at          
    Waldo Hotel, its first city club casino, in central Macau. The            
    Family Companies are connected persons of both KWIH and KWCM.             
                                                                              
    Certain effects of the transactions under the Acquisition                 
    Agreement                                                                 
                                                                              
    Immediately after Completion:                                             
                                                                              
    .   KWCM will own 838,719 of the Galaxy B shares, representing            
    97.9% of the economic interest in Galaxy and 88.1% of the voting          
    rights. The principal asset and business of KWCM will be that of          
    Galaxy but KWCM will continue to operate its existing business in         
    construction materials; and