10:39     CHEUNG TAI HONG<00199> - Announcement & Resumption (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.                                                     
                                                                              
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    CHEUNG TAI HONG HOLDINGS LIMITED                                          
    (Incorporated in Bermuda with limited liability)                          
    (Stock Code: 199)                                                         
                                                                              
    SUBSCRIPTION AND PLACING OF                                               
    CONVERTIBLE NOTES                                                         
    CONNECTED TRANSACTION                                                     
    CHANGES IN DIRECTORSHIP                                                   
    AND                                                                       
    RESUMPTION OF TRADING                                                     
                                                                              
    The Board wishes to announce that the Company has                         
    entered into nine Subscription Agreements with each                       
    of the Subscribers and the Placing Agreement with the                     
    Placing Agent respectively. Seven of the Subscription                     
    Agreements with each of the Fund Subscribers were                         
    entered into on 8 April 2005 and two of the                               
    Subscription Agreements and the Placing Agreement                         
    were entered into on 20 April 2005. Each of the                           
    Subscription Agreements and the Placing Agreement are                     
    not inter-conditional on each other.                                      
                                                                              
    Of the nine Subscribers, seven of them are Fund                           
    Subscribers, with the remaining two Subscribers being                     
    Loyal Concept and Kopola. Pursuant to the                                 
    Subscription Agreements, the Fund Subscribers in                          
    aggregate, Loyal Concept and Kopola have                                  
    conditionally agreed to subscribe by cash for the                         
    Subscription Convertible Notes with principal                             
    amounts of HK$356 million, HK$450 million and HK$150                      
    million respectively. Each of the Fund Subscribers                        
    and their respective investment managers is                               
    independent of, not connected and not acting in                           
    concert with the Company and its connected persons                        
    (as defined under the Listing Rules), and are not                         
    connected persons of the Company. Four of the Fund                        
    Subscribers (with total subscription amount of HK$195                     
    million) are related to each other to the extent that                     
    they have been established and are managed by a common                    
    investment manager which is licensed by the SFC. Loyal                    
    Concept is an indirect wholly-owned subsidiary of                         
    Hanny whose shares are listed on the main board of                        
    the Stock Exchange. Notwithstanding the fact that the                     
    newly appointed Director, Mr. Cheung Hon Kit, is also                     
    a non-executive director of Hanny, and an independent                     
    non-executive Director, Mr. Kwok Ka Lap, Alva, is also                    
    an independent non-executive director of Hanny, each                      
    of Loyal Concept and Hanny is independent of, not                         
    connected and not acting in concert with the Company                      
    and its connected persons (as defined under the                           
    Listing Rules), and are not connected persons of the                      
    Company. Kopola is 50% held by Mr. Ho, the deputy                         
    chairman and independent non-executive Director, and                      
    therefore an Associate of Mr. Ho. As Mr. Ho is a                          
    connected person of the Company under Rule 14A.11 of                      
    the Listing Rules, Kopola is regarded as a connected                      
    person of the Company under Rule 14A.11 of the Listing                    
    Rules.                                                                    
                                                                              
    Pursuant to the Placing Agreement, the Placing Agent                      
    will procure, on a best effort basis, no less than                        
    six Placees to subscribe by cash for Placing                              
    Convertible Notes with a principal amount of HK$44                        
    million. All the Placees and their respective                             
    ultimate beneficial owners will be independent of,