10:14     FIRST NATURAL<01076> - Announcement (4)                             

    The Subscription Price is subject to adjustment as provided in the        
    Offering Circular. Pursuant to the terms of the Offering Circular,        
    the lowest possible Subscription Price will be equal to the par value     
    of the Shares. The current par value of the Shares is HK$0.05. In         
    the event that the subscription rights attaching to the Additional        
    Warrants are exercised in full at a Subscription Price of HK$0.05,        
    the Company would be required to issue 432,000,000 Shares, which          
    would represent approximately 47.03% of the Company's total               
    existing issued share capital or approximately 31.99% of the              
    Company's issued share capital as enlarged by the issue of the            
    Subscription Shares following the exercise in full of the                 
    subscription rights attaching to the Additional Warrants.                 
                                                                              
    Under the Listing Rules if the number of Additional Warrants to be        
    issued will exceed 20% of the issued share capital of the Company,        
    the Company will not be entitled to issue the Additional Warrants,        
    in which case the Bondholders are, in accordance with the terms of        
    the Subscription Agreement, entitled to redeem the Bonds on demand.       
                                                                              
    General Mandate                                                           
                                                                              
    No Shares have been allotted or issued under the General Mandate.         
    The Company is of the view that the General Mandate will be sufficient    
    for issuing the Subscription Shares. Therefore, the Subscription          
    Shares would be issued pursuant to the General Mandate if the             
    Additional Warrants are issued and the subscription rights attached       
    thereto are exercised in full. If, however, the number of                 
    Subscription Shares to be issued exceeds the number of Shares             
    issuable under the General Mandate, shareholder approval will need        
    to be sought for the issue of the excess Subscription Shares.             
                                                                              
    Failure to Issue Additional Warrants                                      
                                                                              
    Under the Subscription Agreement, if the Company fails for any reason     
    to obtain any relevant approvals that are necessary for issuing the       
    Additional Warrants, then the Bondholders can, within 60 days, by         
    written notice addressed to the Company redeem all the Bonds, in          
    which case the Company will be required to pay the principal amount       
    together with any amount due in respect of the outstanding Bonds.         
                                                                              
    Use of Proceeds                                                           
                                                                              
    If the subscription rights attaching to the Additional Warrants are       
    exercised in full and the Warrantholders subscribe in cash for the        
    Subscription Shares which fall to be issued upon the exercise of          
    the subscription rights attaching to the Additional Warrants, it          
    is estimated that the Company will receive net proceeds of                
    approximately HK$21,060,000, after deducting issue costs. The             
    Company intends to use such net proceeds as general working capital       
    for the Company.                                                          
                                                                              
    Application for Listing                                                   
                                                                              
    Application will be made to the Stock Exchange for the listing of,        
    and permission to deal in the Subscription Shares which fall to be        
    issued upon the exercise of the subscription rights attaching to          
    the Additional Warrants.                                                  
                                                                              
    Dilution Effect on Shareholders                                           
                                                                              
    If the Additional Warrants are issued and the subscription rights         
    attaching thereto are exercised, the shareholding of the then             
    existing Shareholders will be diluted. After the issue of the             
    Additional Warrants, the Company will keep the Shareholders               
    informed of the level of dilution and all relevant details of any         
    conversion and/or exercise of the relevant subscription rights            
    attaching to the Additional Warrants in the following manner:             
                                                                              
    (a)   The Company will make a monthly announcement (the ``Monthly         
    Announcement'') on the website of the Stock Exchange. Such                
    announcement will be made on or before the fifth business day             
    following the end of each calendar month and will include the             
    following details in a table form:                                        
                                                                              
    (i)   whether the subscription rights attaching to the Additional         
    Warrants are exercised during the relevant month and details of the       
    exercise, if any, including the date of exercise, number of               
    Subscription Shares issued and the relevant Subscription Price. If        
    no subscription rights attaching to the Additional Warrant are            
    exercised, a negative statement to that effect will be made;              
                                                                              
    (ii)   the number of outstanding Additional Warrants after the            
    exercise, if any;                                                         
                                                                              
    (iii)   the total issued share capital of the Company as at the           
    commencement and the last day of the relevant month; and