10:40     CHEUNG TAI HONG<00199> - Announcement & Resumption (4)              

    is an indirect wholly-owned subsidiary of Hanny whose                     
    shares are listed on the main board of the Stock                          
    Exchange. Hanny and its subsidiaries are principally                      
    engaged in the trading of computer related products,                      
    consumer electronic products which comprise the                           
    manufacturing, distribution and marketing of data                         
    storage media (primarily floppy disks, CD-R, CD-RW                        
    and DVD), the distribution and marketing of computer                      
    accessories and storage media drives, scanners, audio                     
    and video cassettes, minidiscs, household electronic                      
    products and telecommunication accessories and                            
    securities trading. Hanny and its subsidiaries also                       
    made strategic investments in information technology,                     
    supply of household consumer products and other                           
    businesses. 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. The subscription of Subscription                                 
    Convertible Notes by Loyal Concept constitutes a                          
    major transaction and a possible very substantial                         
    acquisition for Hanny under the Listing Rules, for                        
    details please refer to the announcement issued by                        
    Hanny dated 20 April 2005. As stated in the                               
    announcement of Hanny dated 20 April 2005, as at the                      
    date of this announcement, each of Loyal Concept and                      
    Hanny and their respective subsidiaries has no                            
    intention to inject any assets or businesses into the                     
    Group after the completion of the subscription of the                     
    Subscription Convertible Notes by Loyal Concept and                       
    after the exercise of the conversion rights attached                      
    to the Subscription Convertible Notes subscribed by                       
    Loyal Concept.                                                            
                                                                              
    Kopola is an investment and property holding company.                     
    Kopola is 50% held by Mr. Ho with the remaining 50%                       
    held by his elder brother. Mr. Ho is the deputy                           
    chairman and independent non-executive Director. Mr.                      
    Ho is a director of Miramar Hotel and Investment                          
    Company, Limited and a non-executive director of New                      
    World Mobile Holdings Limited, Tai Fook Securities                        
    Group Limited ("TFSGL") and CITIC Pacific Limited.                        
    He is also an independent non-executive director of                       
    Hong Kong Ferry (Holdings) Company Limited, Lee Hing                      
    Development Limited, Shun Tak Holdings Limited and                        
    Starlight International Holdings Limited, all of                          
    which are companies whose shares are listed on the                        
    Stock Exchange. 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.                                                   
                                                                              
    Conditions of the Subscription                                            
    Completion of the Subscription is conditional upon:-                      
                                                                              
    (i)     none of the representations, warranties and                       
    undertakings given by the Company pursuant to the                         
    Subscription Agreement having been breached in any                        
    material respect (or, if capable of being remedied,                       
    has not been remedied), or is misleading or untrue                        
    in any material respect;                                                  
                                                                              
    (ii)    none of the representations, warranties and                       
    undertakings given by each of the Subscribers                             
    pursuant to respective Subscription Agreement having                      
    been breached in any material respect (or, if capable                     
    of being remedied, has not been remedied),