09:50     PAK TAK INT'L<02668> - Announcement (1)                             

    The Stock Exchange of Hong Kong Limited takes no responsibility for the   
    contents of this announcement, makes no representation as to its          
    accuracy or completeness and expressly disclaims any liability            
    whatsoever for any loss howsoever arising from or in reliance upon the    
    whole or any part of the contents of this announcement.                   
                                                                              
    PAK TAK INTERNATIONAL LIMITED                                             
    (Incorporated in Bermuda with limited liability)                          
    (Stock Code: 2668)                                                        
                                                                              
    DISCLOSEABLE TRANSACTION                                                  
                                                                              
    On 6 May 2005, the Purchaser, a wholly-owned subsidiary of the Company,   
    entered into the Contract with the Seller to purchase computerized        
    knitting machines from the Seller for a total consideration of            
    US$846,000 (equivalent to HK$6,598,800). The consideration for the        
    Acquisition will be satisfied by the opening of 365 days letter of        
    credit at sight without interest in favour of the Seller.                 
                                                                              
    As disclosed in an announcement of the Company dated 16 June 2004, the    
    Purchaser had on 16 June 2004 purchased computerized knitting machines    
    from the Seller for a total consideration of US$517,000 (equivalent to    
    HK$4,032,600). The machines purchased under the Previous Acquisition      
    and the Acquisition are of the same type and specification.               
                                                                              
    The Acquisition, either alone or aggregated with the Previous             
    Acquisition, constitutes a discloseable transaction of the Company and    
    is subject to the announcement requirement under Chapter 14 of the        
    Listing Rules. A circular will be despatched within 21 days after         
    publication of this announcement to the Shareholders containing, among    
    other things, further details of the Contract.                            
                                                                              
    THE CONTRACT DATED 6 MAY 2005                                             
                                                                              
    Parties to the Contract                                                   
                                                                              
    Seller:  Win Win Industrial Company Limited, a company incorporated in    
    Hong Kong with limited liability. To the best of the Directors'           
    knowledge, information and belief having made all reasonable enquiry,     
    the Seller and its ultimate beneficial owners are not connected with      
    the directors, the chief executives or the substantial shareholders of    
    the Company or any of its subsidiaries or their respective associates     
    and are third parties independent of the Company and connected persons    
    of the Company. Save and except for the purchase of computerized          
    knitting machines from them under the Acquisition and the Previous        
    Acquisition, the Group has no other relationship with the Seller.         
                                                                              
    Purchaser:  Richtime Knitting Limited, a company incorporated in Hong     
    Kong with limited liability and is a wholly-owned subsidiary of the       
    Company                                                                   
                                                                              
    Subject matter of the Contract                                            
                                                                              
    Pursuant to the Contract, the Purchaser agreed to purchase and the        
    Seller agreed to sell computerized knitting machines for the production   
    of knitted garments to the Purchaser for a total consideration of         
    US$846,000 (equivalent to HK$6,598,800). The said machines are all        
    brand new machines imported from Japan and no revenue has been            
    generated by these machines in the past. No valuation on the machines     
    has been done. However, the Directors have compared the price offered     
    by the Seller with that of other companies selling similar machines and   
    base on the information obtained, the Directors consider that the price   
    offered by the Seller is more competitive. The estimated total maximum    
    production capacity of the machines is approximately 50,000 dozens        
    knitted garments per year. The Directors understand from the Seller       
    that the life duration of the machines is more than 8 years in case the   
    machines are running in normal working condition environment. The unit    
    price of the machines purchased under the Acquisition is the same as      
    the unit price of the machine purchased under the Previous Acquisition.   
    The total consideration for the Previous Acquisition is different from    
    the Acquisition because the number of machines purchased is different.    
    Consideration                                                             
                                                                              
    The consideration for the Acquisition will be satisfied in full by the    
    opening of 365 days letter of credit at sight without interest in         
    favour of the Seller.                                                     
                                                                              
    The Directors have compared the price offered by the Seller with that     
    of other companies selling similar machines. The consideration is         
    arrived at after arm's length negotiation with the Seller by reference    
    to the price offered by such other companies.                             
                                                                              
    The Board considers that the terms of the Contract are normal             
    commercial terms and are fair and reasonable and in the interests of