10:40     CHEUNG TAI HONG<00199> - Announcement & Resumption (3)              

    independent Shareholders regarding the Subscription                       
    and the Placing. An independent financial adviser                         
    will be appointed to advise the Independent Board                         
    Committee and the independent Shareholders regarding                      
    the Subscription and Placing.                                             
                                                                              
    A circular containing, among other things, (i)                            
    details of the Subscription Agreements and the                            
    Placing Agreement; (ii) the recommendations of the                        
    Independent Board Committee in relation to the                            
    Subscription and Placing; (iii) the advice of the                         
    independent financial adviser to the Independent                          
    Board Committee and the independent Shareholders in                       
    relation to the Subscription and Placing; and (iv)                        
    a notice convening the SGM, will be dispatched to the                     
    Shareholders as soon as practicable.                                      
                                                                              
    The Board is also pleased to announce that Mr. Cheung                     
    Hon Kit has been appointed as the chairman and                            
    executive Director and Mr. Chan Fut Yan as the                            
    managing Director and executive Director with effect                      
    from 20 April 2005. On the same date, Mr. Lo Lin Shing,                   
    Simon resigned as the chairman and executive Director                     
    but remained as a non-executive Director. Upon                            
    completion of the subscription by Kopola, Mr. Ho will                     
    cease to be an independent non-executive Director but                     
    will remain as a non-executive Director.                                  
                                                                              
    Trading in the Shares on the Stock Exchange has been                      
    suspended with effect from 10:00 a.m. on 29 March 2005                    
    at the request of the Company pending the release of                      
    this announcement. An application has been made to                        
    the Stock Exchange for the resumption of trading in                       
    the Shares on the Stock Exchange with effect from 9:30                    
    a.m. on 21 April 2005.                                                    
                                                                              
                                                                              
    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. Each of the Subscription                      
    Agreements and the Placing Agreement are not                              
    inter-conditional on each other.                                          
                                                                              
    SUBSCRIPTION AGREEMENTS                                                   
    Dates of the Subscription Agreements                                      
    Seven of the Subscription Agreements with each of the                     
    Fund Subscribers were entered into on 8 April 2005                        
    and the remaining two of the Subscription Agreements                      
    were entered into on 20 April 2005.                                       
                                                                              
    Parties to the Subscription Agreements                                    
    (i)     The Company as the issuer; and                                    
                                                                              
    (ii)    Seven Fund Subscribers, Loyal Concept and                         
    Kopola as the Subscribers to subscribe by cash for                        
    the Subscription Convertible Notes with principal                         
    amounts of HK$356 million, HK$450 million, and HK$150                     
    million respectively.                                                     
                                                                              
    Subscribers                                                               
    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 investment holding company and