09:34     WANG ON GROUP<01222> - Announcement (2)                             

                                                                              
    Terms   :       The Vendor agrees to sell and the Purchaser agrees to     
    purchase the Property subject to the following existing                   
    tenancies:                                                                
                                                                              
    (i)     the existing tenancy in respect of the ground floor is for        
    a monthly net rental of HK$34,000 and will expire on 15 January           
    2006; and                                                                 
                                                                              
    (ii)    the existing tenancy in respect of the first floor is for         
    a monthly rental of HK$6,200 (inclusive of rates and government           
    rent) and will expire on 7 April 2007.                                    
                                                                              
    The Vendor agrees to deliver to the Purchaser vacant possession           
    in respect of the second floor and rooftop on completion.                 
                                                                              
    At completion of the sale and purchase of the Property, the Vendor        
    will pay to the Purchaser the full amount of all rental deposits          
    received from each of the existing tenants under the relevant             
    existing tenancy.                                                         
                                                                              
    The Purchaser agrees to purchase the Property from the Vendor             
    on a "as is" basis and acknowledges and agrees that the Property          
    is subject to a building order issued by the Building Authority           
    to demolish certain structures attached to the Property. The              
    Vendor will therefore be responsible for the payments, which              
    are not expected to be substantial, associated with the                   
    demolition of such structures.                                            
                                                                              
    REASONS FOR THE ACQUISITION                                               
                                                                              
    Having regard to the upturn of the Hong Kong economy and the              
    property market, the Directors consider the terms of the                  
    Acquisition are fair and reasonable and the Acquisition is in             
    the interest of the shareholders as a whole.                              
                                                                              
    The Acquisition will be funded approximately one-half by the              
    Group's internal resources and the remainder by bank financing.           
                                                                              
    INFORMATION ON THE GROUP                                                  
                                                                              
    The Group is principally engaged in property development and              
    property investment, the management and sub-licensing of Chinese          
    wet markets, shopping centres and car parks. The Group also has           
    interests in the pharmaceutical business through its investments          
    in Wai Yuen Tong Medicine Holdings Limited, a company listed              
    on the Stock Exchange.                                                    
                                                                              
    GENERAL                                                                   
                                                                              
    The Acquisition constitutes a discloseable transaction for the            
    Company under the Listing Rules. A circular containing details            
    of the Acquisition will be sent to the shareholders of the Company        
    as soon as possible.                                                      
                                                                              
    DEFINITIONS                                                               
                                                                              
    "Acquisition"   the acquisition of the Property pursuant to the           
    Agreement                                                                 
                                                                              
    "Agreement"     the provisional agreement for sale and purchase           
    entered into between Smart First Investment Limited as the                
    Purchaser and the Vendor on 15 April 2005 relating to the                 
    Acquisition;                                                              
                                                                              
    "associates"    has the meaning ascribed thereto in the Listing           
    Rules;                                                                    
                                                                              
    "Board" the board of Directors of the Company;                            
                                                                              
    "Company"       Wang On Group Limited, a company incorporated