11:10     CHAMPION TECH<00092> - Announcement (5)                             

    interest.                                                                 
                                                                              
    Mandate:                                                                  
    The maximum number of new Shares which may be issued                      
    upon conversion of the Additional Tranche 1 Bonds                         
    based on the Fixed Conversion Price is 26,396,784                         
    (applying the Relevant Exchange Rate) representing                        
    approximately 2.14 per cent. and approximately 2.10                       
    per cent. of the existing issued share capital and                        
    the enlarged issued share capital respectively. Upon                      
    exercise of the Subscription Right in respect of the                      
    Additional Tranche 1 Bonds in full (applying the                          
    Relevant Exchange Rate), 4,949,397 new Shares,                            
    representing approximately 0.40 per cent. and                             
    approximately 0.40 per cent. of the existing issued                       
    share capital and enlarged issued share capital                           
    respectively, will be issued by the Company. The total                    
    number of Shares which may be issued upon full                            
    conversion of the Additional Tranche 1 Bonds and the                      
    exercise in full of the Subscription Right in respect                     
    of the Additional Tranche 1 Bonds based on the Fixed                      
    Conversion Price is 31,346,181 Shares, representing                       
    approximately 2.54 per cent. and approximately 2.48                       
    per cent. of the existing issued share capital and                        
    the enlarged issued share capital respectively, which                     
    Shares, will be issued pursuant to the general mandate                    
    granted to the Directors by the shareholders of the                       
    Company pursuant to an ordinary resolution passed at                      
    the annual general meeting of the Company held on 26                      
    November 2004, under which a maximum of 239,676,177                       
    Shares may be issued (the "Existing General                               
    Mandate").                                                                
                                                                              
    The maximum number of new Shares which may be issued                      
    upon conversion of the Additional Tranche 1 Bonds                         
    based on the Floating Conversion Price cannot be                          
    ascertained at present because the Floating                               
    Conversion Price can only be determined when the                          
    notice of conversion is issued by CSFB. In any event,                     
    the total number of Shares to be issued pursuant to                       
    the conversion of the Additional Tranche 1 Bonds and                      
    the exercise of the Subscription Right in respect of                      
    the Additional Tranche 1 Bonds will not exceed                            
    239,676,177 Shares, i.e. the threshold of the                             
    Existing General Mandate. CSFB has been informed by                       
    the Company that it will exercise the Downside Option                     
    to redeem the Additional Tranche 1 Bonds if the number                    
    of Shares to be issued pursuant to the conversion of                      
    the Additional Tranche 1 Bonds and the exercise of                        
    the Subscription Right in respect of the Additional                       
    Tranche 1 Bonds will exceed 239,676,177 Shares.                           
                                                                              
    USE OF PROCEEDS AND REASON FOR THE ADDITIONAL TRANCHE                     
    1 BONDS ISSUE                                                             
    The net proceeds of approximately US$7,727,000                            
    (equivalent to approximately HK$60,271,000) derived                       
    from the issue of the Additional Tranche 1 Bonds,                         
    together with the approximate amount of HK$11,698,000                     
    which would be received subject to and upon exercise                      
    in full of the Subscription Right in respect of the                       
    Additional Tranche 1 Bonds (subject to adjustment as                      
    set out in the Subscription Agreement as supplemented                     
    by the Supplemental Agreement), will be used for                          
    general working capital purposes provided that such                       
    proceeds shall not be used to pay dividends to                            
    shareholders of the Company, for the purposes of or                       
    in relation to any repayment to or reduction of the                       
    debt of a related party or to repurchase Shares. The                      
    Company does not have any specific plan as regards                        
    the use of these proceeds other than as general                           
    working capital.                                                          
                                                                              
    The Directors consider that the terms of the