11:09     CHAMPION TECH<00092> - Announcement (2)                             

    outstanding Additional Tranche 1                                          
    Bond at 100% of its principal                                             
    amount on maturity date                                                   
                                                                              
    The Company will redeem the Additional Tranche 1 Bonds                    
    by delivering such number of Shares as results from                       
    dividing 100% of the principal amount of the                              
    Additional Tranche 1 Bonds by the lower of the Fixed                      
    Conversion Price and the Floating Conversion Price                        
    in effect on the maturity date unless the then current                    
    market price of the Shares as determined according                        
    to the formula provided in the terms and conditions                       
    of the Additional Tranche 1 Bonds is below a                              
    prescribed figure, in which case the Additional                           
    Tranche 1 Bonds will be redeemed at 100% of the                           
    principal amount at maturity                                              
                                                                              
    Floating Conversion Price       94% of the average of any                 
    five consecutive closing prices                                           
    per Share as selected by CSFB during the                                  
     30 consecutive business days immediately                                 
     prior to the date on which notice                                        
    of CSFB is received by the Company                                        
                                                                              
    94% of the average of any five closing prices per Share                   
    as selected by CSFB during the 30 consecutive business                    
    days immediately prior to the date on which notice                        
    of CSFB is received by the Company                                        
                                                                              
    Downside Price (Note 1) HK$1.10         HK$1.1345                         
                                                                              
    Put Price (Note 2)      HK$1.00         HK$0.9454                         
                                                                              
    Notes :                                                                   
                                                                              
    (1)     The Company may redeem any Additional Tranche                     
    1 Bonds presented for conversion if the closing price                     
    per Share is less than or equal to the Downside Price                     
    on a business day during the relevant conversion                          
    period. Further details have been set out in the                          
    paragraph "Early Redemption" in this announcement.                        
                                                                              
    (2)     CSFB shall have the right to require the Company                  
    to redeem the Additional Tranche 1 Bonds if the                           
    closing price per Share is less than or equal to the                      
    Put Price for 10 consecutive business days during the                     
    relevant conversion period. However, the Company                          
    shall not be required to redeem the Additional Tranche                    
    1 Bonds of principal amount of more than US$2,000,000                     
    in any calendar month. Further details have been set                      
    out in the paragraph "Early Redemption" in this                           
    announcement.                                                             
                                                                              
    The terms of the Supplemental Agreement were                              
    negotiated on an arm's length basis and the Directors                     
    are of the view that they are fair and reasonable so                      
    far as the Company and its shareholders are concerned.                    
                                                                              
    On 28 April 2005 (the "Additional Tranche 1 Bonds                         
    Closing Date"), the Company issued, and CSFB                              
    subscribed for, the Additional Tranche 1 Bonds with                       
    the Amended Terms in an aggregate principal amount                        
    of US$8,000,000 (equivalent to approximately                              
    HK$62,400,000) pursuant to the exercise of the Option                     
    and the Supplemental Agreement. The Additional                            
    Tranche 1 Bonds were paid in cash by CSFB on the                          
    Additional Tranche 1 Bonds Closing Date.                                  
                                                                              
    Principal terms:                                                          
    Save for, among other things, the Amended Terms, the                      
    Additional Tranche 1 Bonds were issued on                                 
    substantially the same terms as the Original