10:45     SHANGHAI IND H<00363> - Announcement (4)                            

    Each of the parties to the Disposal Agreement has agreed to use its       
    best endeavours to procure that the Disposal Conditions are               
    fulfilled on or before 30th June, 2005 or such other date as the          
    parties may agree in writing.                                             
                                                                              
    Subject to fulfillment of the Disposal Conditions, it is expected         
    that completion of the Disposal Agreement will take place by 30th         
    June, 2005. The Disposal Agreement is conditional upon, among             
    others, fulfillment of the Acquisition Conditions, while the              
    Acquisition Agreement is not conditional upon the Disposal                
    Conditions.                                                               
                                                                              
    Completion                                                                
                                                                              
    After fulfillment of the Disposal Conditions, SI Pharmaceutical and       
    Shanghai Medical Group shall agree on a date for completion of the        
    Disposal Agreement.                                                       
                                                                              
    Completion of the Disposal Agreement shall take place at the same         
    time as the completion of the Acquisition Agreement. On such date         
    of completion, Shanghai Medical Group shall pay the consideration         
    of RMB155,800,000 (equivalent to approximately HK$146,981,000).           
                                                                              
    The consideration for the Disposal has taken into account the rights,     
    benefits and entitlements to distributions and dividends attached         
    to the Equity Interest up to 31st December, 2004. If completion of        
    the Disposal Agreement takes place before 1st July, 2005, Shanghai        
    Medical Group will be entitled to such entitlements attached to the       
    Equity Interest up to completion of the Disposal; otherwise the           
    parties to the Disposal Agreement shall resolve by way of                 
    negotiation.                                                              
                                                                              
    After completion of the Disposal, the Group will cease to have any        
    equity interest in Sunve Pharmaceutical.                                  
                                                                              
    INFORMATION ON MEDICAL INSTRUMENTS                                        
                                                                              
    Medical Instruments is principally engaged in the design,                 
    development, manufacturing and distribution of medical apparatus          
    including emergency room, operating room and dental equipment.            
                                                                              
    Share capital                                                             
                                                                              
    Medical Instruments has a total issued share capital of                   
    RMB100,000,000 divided into 100,000,000 shares of RMB1.00 each. The       
    total issued shares in Medical Instruments are held by the following      
    shareholders before completion of the Acquisition in the following        
    manner:                                                                   
                                                                              
    Name of shareholder   No. of shares held   Percentage Shareholding        
                                                                              
    Shanghai Medical Group  40,000,000  40%                                   
    SI United and its subsidiary  59,000,000  59%                             
    Ding Wen Xiang*   500,000  0.5%                                           
    Shanghai Jin Bin Industrial Company*   500,000  0.5%                      
                                                                              
    The shareholding structure of Medical Instruments immediately             
    after completion of the Acquisition will be as follows:                   
                                                                              
    Name of shareholder   No. of shares held   Percentage Shareholding        
                                                                              
    SI United and its subsidiary   99,000,000   99%                           
    Ding Wen Xiang*   500,000   0.5%                                          
    Shanghai Jin Bin Industrial Company*   500,000   0.5%                     
                                                                              
    Financial information                                                     
                                                                              
    The audited consolidated profit before taxation and minority              
    interests and the audited consolidated profit after taxation and          
    minority interests of Medical Instruments for the two years ended         
    31st December, 2004, which were prepared in accordance with the           
    general accepted accounting principles in the PRC, were as follows:       
                                                                              
    Year ended 31st December,                                                 
    2004         2003                                                         
    RMB'000      RMB'000                                                      
                                                                              
    Profit before taxation                                                    
    and minority interests                22,529       20,635                 
    Profit after taxation                                                     
    and minority interests                18,124        17,234                
                                                                              
    The audited consolidated net asset value and the total asset value        
    of Medical Instruments as at 31st December, 2004 amounted to              
    approximately RMB185,282,000 (equivalent to approximately                 
    HK$174,794,000) and approximately RMB476,063,000 (equivalent to           
    approximately HK$449,116,000 respectively.