09:37     WAI YUEN TONG<00897> - Announcement (1)                             

    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.                                                             
                                                                              
    WAI YUEN TONG MEDICINE HOLDINGS LIMITED                                   
    *                                                                         
    (Incorporated in Bermuda with limited liability)                          
    (Stock Code: 897)                                                         
                                                                              
    PROPOSAL FOR CAPITAL REORGANISATION INVOLVING SHARE                       
    CONSOLIDATION AND CAPITAL REDUCTION                                       
                                                                              
    SUMMARY                                                                   
                                                                              
    The Board proposes to seek approval from the Shareholders to              
    effect the Capital Reorganisation involving: (a) the share                
    consolidation of every 10 issued Existing Shares into 1                   
    Consolidated Share; (b) the reduction of the nominal value of             
    each of the Consolidated Shares then in issue from HK$0.10 to             
    HK$0.01 by canceling paid-up capital to the extent of HK$0.09             
    on each Consolidated Share; and (c) the crediting of the amount           
    of credit of approximately HK$31,417,823 (or up to approximately          
    HK$33,217,822 if the 2005 Convertible Notes are converted in              
    full) arising from the Capital Reduction to the contributed               
    surplus account of the Company and the utilisation of such credit         
    to set off the loss of the Company.                                       
                                                                              
    The Capital Reorganisation is conditional upon:                           
                                                                              
    (a)     the passing of a special resolution by the Shareholders to        
    approve the Capital Reorganisation at the SGM;                            
                                                                              
    (b)     the compliance with the relevant procedural requirements          
    under the Companies Act to effect the Capital Reorganisation              
    (including publication of a press notice in an appointed                  
    newspaper in Bermuda ); and                                               
                                                                              
    (c)     the Listing Committee of the Stock Exchange granting the          
    listing of, and permission to deal in, the New Shares in issue            
    after the Capital Reorganisation and (if required) the Shares             
    which may fall to be issued upon exercise of the 2005 Convertible         
    Notes and the Share Options (if any).                                     
                                                                              
    Assuming that all the above conditions are fulfilled, it is               
    expected that the Capital Reorganisation will become effective            
    on the Business Day following the passing of the special                  
    resolution to be proposed at the SGM.                                     
                                                                              
    A circular containing further information on the Capital                  
    Reorganisation, including the expected timetable for the Capital          
    Reorganisation, parallel trading arrangements, arrangements               
    for odd lot facilities and free exchange of share certificates,           
    and the notice of SGM will be dispatched to the Shareholders              
    as soon as practicable.                                                   
                                                                              
    Since the Capital Reorganisation is subject to the fulfillment            
    of a number of conditions, the Capital Reorganisation may or              
    may not complete. Shareholders and potential investors in the             
    Company are advised to exercise caution when dealing in the               
    Existing Shares.                                                          
                                                                              
                                                                              
    CAPITAL REORGANISATION                                                    
                                                                              
    The Board proposes to seek approval from the Shareholders to              
    effect the Capital Reorganisation involving: