09:33     LUEN THAI<00311> - Announcement (3)                                 

    A circular containing details of the Transaction will be                  
    despatched to the shareholders of the Company within 21 days              
    from the date of publication of this announcement.                        
                                                                              
    V.   DEFINITIONS                                                          
    "Acquired Company"   Partner Joy Group Limited, a private                 
    company incorporated under the laws of the British Virgin                 
    Islands;                                                                  
                                                                              
    "Company"   Luen Thai Holdings Limited, the shares of which               
    are listed on the Stock Exchange;                                         
                                                                              
    "Completion"   completion of the Sale and Purchase Agreement              
    in accordance with its terms;                                             
                                                                              
    "connected person"   shall have the meaning as ascribed to it             
    under the Listing Rules;                                                  
                                                                              
    "Consideration"   the consideration to be determined, and                 
    paid by the Purchaser, in accordance with the terms of the                
    Sale and Purchase Agreement;                                              
                                                                              
    "Directors"   directors of the Company for the time being;                
                                                                              
    "Group"   the Company and its subsidiaries;                               
                                                                              
    "Guarantor"   Luen Thai Overseas Limited, a company                       
    incorporated under the laws of Bahamas which is a wholly-                 
    owned subsidiary of the Company and the immediate holding                 
    company of the Purchaser;                                                 
                                                                              
    "Hong Kong"   the Hong Kong Special Administrative Region of              
    the People's Republic of China;                                           
                                                                              
    "Listing Rules"   the Rules Governing the Listing of                      
    Securities on the Stock Exchange;                                         
                                                                              
    "Novelwill"   Novelwill International Limited, a company                  
    incorporated in the British Virgin Islands;                               
                                                                              
    "Purchaser"   Fortune Investment Overseas Limited, a company              
    incorporated under the laws of the British Virgin Islands and             
    a wholly-owned subsidiary of each of the Guarantor and the                
    Company;                                                                  
                                                                              
    "Sale and Purchase Agreement"   a sale and purchase agreement             
    dated 3 May 2005 entered into between, inter alia, the Vendor             
    and the Purchaser in relation to the Transaction;                         
                                                                              
    "Share"   a share of US$1.00 each in the capital of the                   
    Acquired Company;                                                         
                                                                              
    "Stock Exchange"   The Stock Exchange of Hong Kong Limited;               
    and                                                                       
                                                                              
    "Transaction"   the acquisition of a 71% interest in the                  
    issued capital of the Acquired Company;                                   
                                                                              
    "Trumpinvest"   Trumpinvest Holdings Limited, a company                   
    incorporated in the British Virgin Islands;                               
                                                                              
    "Vendor"   New Trillion Consultants Limited, a company                    
    incorporated under the laws of the British Virgin Islands;                
    and                                                                       
                                                                              
    "Warrantor"   Tien-Hu Enterprise Limited, a company                       
    incorporated under the laws of Hong Kong, which together with             
    the Vendor are the warrantors under the Sale and Purchase                 
    Agreement.                                                                
                                                                              
    By order of the Board of Directors                                        
    Luen Thai Holdings Limited                                                
    Henry Tan                                                                 
    Executive Director & Chief Executive Officer                              
                                                                              
    Hong Kong, 4 May 2005                                                     
                                                                              
    As at the date of this announcement, the executive directors              
    of the Company are Messrs. Tan Siu Lin (Chairman), Tan Henry,             
    Tan Willie and Tan Cho Lung, Raymond; and the independent                 
    non-executive directors are Messrs. Chan Henry, Cheung Siu                
    Kee and Seing Nea Yie.