11:06 EVA PRECISION INDUSTRIAL HOLDINGS LTD<00838>-Announcement(2) expected to commence at 9:30 a.m. on 11 May 2005. Subject to the granting of the listing of, and permission to deal in, the Shares on the Main Board of the Stock Exchange, as well as compliance with the stock admission requirements of HKSCC, the Shares will be accepted as eligible securities by HKSCC for deposit, clearance and settlement in the Central Clearing and Settlement System ("CCASS") with effect from the commencement date of dealings in the Shares on the Main Board of the Stock Exchange or such other date as determined by HKSCC. All activities under CCASS are subject to the General Rules of CCASS and the CCASS Operational Procedures in effect from time to time. The Share Offer comprises the Placing and the Public Offer. A total of 130,000,000 Shares ("Offer Shares") will be initially made available under the Share Offer, of which 117,000,000 Shares (the "Placing Shares"), representing 90% of the Offer Shares initially available under the Share Offer, will be conditionally placed with selected professional, institutional and other investors. The remaining 13,000,000 Shares (the "Public Offer Shares"), representing 10% of the Offer Shares initially available under the Share Offer, will be offered to members of the public in Hong Kong under the Public Offer. For allocation purposes only, the Public Offer Shares (after taking into account any reallocation of Offer Shares between the Placing and the Public Offer referred to below) will be divided equally into two pools: pool A and pool B. The Public Offer Shares in pool A will initially consist of 6,500,000 Shares and will be allocated on an equitable basis to successful applicants who have applied for Public Offer Shares with a total subscription amount (excluding amounts of brokerage, SFC transaction levy, the SFC investor compensation levy and the Stock Exchange trading fee payable) of HK$5 million or less. The Public Offer Shares in pool B will initially consist of 6,500,000 Shares and will be allocated on an equitable basis to successful applicants who have applied for Public Offer Shares with a total subscription amount (excluding amounts of brokerage, Stock Exchange trading fee, SFC transaction levy and SFC investor compensation levy) of more than HK$5 million and up to the total value of pool B. Applicants should be aware that applications in pool A and applications in pool B may receive different allocation ratios. If Public Offer Shares in one pool (but not both pools) are under-subscribed, the surplus Public Offer Shares will be transferred to the other pool to satisfy demand in that pool and be allocated accordingly. Applicants can only receive an allocation of Public Offer Shares from either pool A or pool B but not from both pools and may only apply for Public Offer Shares in either pool A or pool B. The initial allocation of the Offer Shares between the Public Offer and the Placing is subject to re-allocation depending on the level of subscription of the Public Offer. The number of Offer Shares will be re-allocated to the Public Offer on the following basis: (1) if the number of Offer Shares validly applied for under the Public Offer represents 15 times or more but less than 50 times of the number of Offer Shares initially available for subscription under the Public Offer, then Offer Shares will be reallocated to the Public Offer from the Placing, so that the total number of Offer Shares available under the Public Offer will be 39,000,000 Offer Shares (representing 30% of the total number of the Offer Shares initially available under the Share Offer, assuming that the Over-allotment Option is not exercised); (2) if the number of Offer Shares validly applied for under the Public Offer represents 50 times or more but less than 100 times of the number of Offer Shares initially available for subscription under the Public Offer, then the number of Offer Shares to be reallocated to the Public Offer from the Placing will be increased so that the total number of Offer Shares available under the Public Offer will be 52,000,000 Offer Shares (representing 40% of the total number of Offer Shares initially available under the Share Offer, assuming that the Over-allotment Option is not exercised); and (3) if the number of Offer Shares validly applied for under the Public Offer represents 100 times or more of the number of Offer Shares initially available for subscription under the Public Offer, then the number of Offer Shares to be reallocated to the Public Offer from the Placing will be increased so that the total number of Offer Shares available under the Public Offer will be 65,000,000 Offer Shares (representing 50% of the total number of the Offer Shares initially available under the Share Offer, assuming that the Over-allotment Option is not exercised). If the Public Offer is not fully subscribed, the Joint Lead Managers (for themselves and on behalf of the Underwriters) have the authority to reallocate all or any unsubscribed Public Offer Shares originally included in the Public Offer to the Placing, in such number as they deem appropriate, provided that there is sufficient demand under the Placing to take up such reallocated Offer Shares. If the Placing is not fully subscribed, the Joint Lead Managers, for themselves and on behalf of the Underwriters, have the authority to reallocate all or any unsubscribed Placing Shares originally included in the Placing to the Public Offer, in such number as they deem appropriate, provided that there is sufficient demand under the Public Offer to take up such reallocated