09:42     FONG'S IND<00641> - Announcement (4)                                

    Regional Sales Coordination Agreement  3,300  2,900  2,500  1st Sales     
    Agency Agreement   600   600     600Technical, Sales and Marketing        
      Support Agreement   280   500   700                                     
    2nd Sales Agency Agreement   470   700  1,200                             
    3rd Sales Agency Agreement  1,600  1,800  1,600                           
                                                                              
                                                                              
      6,250  6,500  6,600                                                     
                                                                              
                                                                              
    LISTING RULES IMPLICATIONS                                                
                                                                              
    Since the applicable percentage ratio of the Listing Rules on an annual   
    basis is less than 2.5% and the aggregate annual amount payable under     
    the Continuing Connected Transactions is less than HK$10 million, the     
    Continuing Connected Transactions are only subject to the reporting and   
    announcement requirements and are exempt from the independent             
    shareholders' approval requirements under Chapter 14A of the Listing      
    Rules. Details of the Continuing Connected Transactions will be           
    included in the Company's next published annual report and accounts in    
    compliance with Rules 14A.45 and 14A.46 of the Listing Rules.             
                                                                              
    The Company will comply with the requirements under Rule 14A.36 of the    
    Listing Rules if the aggregate annual amount of any of the Continuing     
    Connected Transactions exceeds the de minimis thresholds under Rule       
    14A.34 of the Listing Rules during each of the three years ending         
    December 31, 2007, or when any of the Continuing Connected Transactions   
    is renewed or there are material changes to the terms of the Continuing   
    Connected Transactions. The Company will also comply with the             
    requirements under Rule 14A.37 to Rule 14A.41 of the Listing Rules in     
    relation to the Continuing Connected Transactions during each of the      
    three years ending December 31, 2007.                                     
                                                                              
    By Order of the Board                                                     
    Fong Sou Lam                                                              
    Chairman                                                                  
                                                                              
    Hong Kong, April 20, 2005.                                                
                                                                              
    As at the date of this announcement, the Executive Directors are Mr.      
    Fong Sou Lam, Mr. Wan Wai Yung, Mr. Lee Che Chiu, Mr. Fong Kwok Leung,    
    Kevin, Mr. Fong Kwok Chung, Bill, Mr. Mo Yiu Leung, Jerry, Mr. Cheuk      
    Hon Kin, Kelvin, Dr. Tsui Tak Ming, William, Mr. Tsui Wai Keung, Ms.      
    Poon Hang Sim, Blanche and Mr. Peter Rainer Philipp; the Independent      
    Non-Executive Directors are Mr. Cheung Chiu Fan, Mr. Lui Chi Lung,        
    Louis and Dr. Yuen Ming Fai.