10:30     K. WAH INT'L<00173>&K. WAH CONS<00027>-Joint Ann & Resumed-4        

    GENERAL                                                                   
                                                                              
    The Subscription Shares will be issued pursuant to the general            
    mandate to allot, issue and deal with Shares granted to the directors     
    of KWCM by a resolution of its shareholders passed at KWCM's annual       
    general meeting held on 31 May, 2004. The general mandate had not         
    been used prior to entering into the Placing Agreement and                
    Subscription Agreement and a maximum of 253,832,530 Shares is             
    available under it. KWCM has not purchased any shares during the          
    30 consecutive trading day period ending on and including the Last        
    Dealing Date.                                                             
                                                                              
    The Subscription Shares will rank equally with all other Shares in        
    issue at the time of their issue and allotment.                           
                                                                              
    EFFECT OF THE PLACING AND SUBSCRIPTION                                    
                                                                              
    The indirect shareholding of KWIH in KWCM immediately before              
    completion of the Placing, immediately after completion of the            
    Placing but before completion of the Subscription, and immediately        
    after completion of both the Placing and the Subscription are and         
    will be as follows:                                                       
                                                                              
    Indirect shareholding of KWIH in KWCM                                     
    No. of Shares indirectly held by KWIH in KWCM                             
    (Note)                                                                    
    (Note)                                                                    
                                                                              
    Immediately before the Placing and the Subscription                       
    65.74%                                                                    
    852,775,351                                                               
                                                                              
    Immediately after the Placing but before the Subscription                 
    54.49%                                                                    
    706,775,351                                                               
                                                                              
    Immediately after the Placing and the Subscription                        
    59.09%                                                                    
    852,775,351                                                               
                                                                              
    Note: The above figures are calculated based on a total of                
    1,297,191,563 Shares in issue immediately before the Placing. The         
    above figures assume that other than the Subscription Shares, no          
    new Shares are issued or no existing Shares are purchased by KWCM         
    and, other than the Placing Shares, no Shares are sold or purchased       
    by KWCM, in each case after the date of this announcement up to the       
    date of the completion of the Subscription.                               
                                                                              
    For the diagrams illustrate the shareholdings in KWCM and KWIH            
    before and after Completion of the Placing and Subscription, please refer 
    to the press announcement today.                                          
                                                                              
    One purpose of the Placing and Subscription is to raise funding for       
    the payment obligations of KWCM under the Acquisition Agreement and       
    the other is to increase the percentage of the issued Shares in the       
    hands of the public for the purposes of the Listing Rules. Immediately    
    after completion of the Placing but before completion of the              
    Subscription 38.25% of the issued Shares will be in the hands of          
    the public. Immediately after completion of the Subscription, 34.39%      
    of the issued Shares will be in the hands of the public. Immediately      
    after completion of the Acquisition Agreement (assuming no Shares         
    are issued between the date of this announcement and completion of        
    the Acquisition Agreement save for the Subscription Shares) and Share     
    to be issued pursuant to the Acquisition Agreement, 25.03% of the         
    issued Shares will be in the hands of the public. This includes 9.92%     
    of the then issued Shares which will belong to Brightwealth               
    Investments Limited and will be subject to the Brightwealth Options       
    as disclosed in the announcement of KWCM and KWIH dated 18 April,         
    2005.