10:05     WEALTHMARK INTL<00039> - 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.                   
                                                                              
                                                                              
    WEALTHMARK INTERNATIONAL (HOLDINGS) LIMITED                               
    (incorporated in Cayman Islands with limited liability)                   
    (Stock Code: 39)                                                          
                                                                              
    ANNOUNCEMENT                                                              
                                                                              
                                                                              
    The Company refers to its announcement dated 22nd February, 2005 and      
    wishes to update Shareholders on the status of the Review and the         
    findings of HLB Hodgson Impey Cheng on the internal controls of the       
    Group, their recommendation and the implementation of the Manual.         
                                                                              
    The Company refers to its announcement dated 22nd February, 2005 and      
    wishes to update Shareholders on the status of the Inquiry and Review     
    and the findings of HLB Hodgson Impey Cheng ("HLB") on the internal       
    controls of the Group, their recommendation and the implementation of     
    the Internal Control and Accounting Manual (the "Manual").                
                                                                              
    Capitalised terms used herein and not defined shall have the same         
    meanings as in the Company's announcement dated 22nd February, 2005       
    unless the context otherwise requires.                                    
                                                                              
    As announced on 22nd February, 2005, the Company had prepared the Manual  
     for adoption by the Group. Having reviewed the Manual, the management    
    of the Company were of the opinion that the adoption of the Manual would  
     strengthen the internal control system of the Group.                     
                                                                              
    SUMMARY OF ITS PRELIMINARY FINDINGS AND RECOMMENDATIONS                   
                                                                              
    The Independent Committee has had (i) discussions with HLB in relation    
    to their preliminary comments and recommendations on the internal         
    control systems of the Group and the Manual; and (ii) internal            
    discussions on how to implement HLB's recommendations and devise new      
    measures to strengthen the internal control system of the Group. A        
    summary extracting the points issued by HLB in their preliminary          
    findings for the period covered from 24 January 2005 to 25 February 2005  
     is set out below for the information of the Shareholders and investors   
    of the Group:                                                             
                                                                              
    I.   Effective System of Internal Control                                 
                                                                              
    Insufficient control in segregation of duties over physical security of   
    cash in Hui Zhou factory                                                  
                                                                              
    The factory at Hui Zhou maintained a high balance of cash on hand in a    
    safe as most transactions were settled in cash.                           
                                                                              
    Recommendations for Rectification of Deficiency                           
                                                                              
    HLB recommends that the keys for the safe be separately kept by two       
    reliable staff. Except for the cashier, the executive director in the     
    Hui Zhou Factory should keep one key. This would ensure that each time    
    the safe is opened with proper authorisation from a director. HLB also    
    strongly encourages the Company to require that payments should be        
    settled more often by cheques or auto-payments to minimize the level of   
    cash kept in the safe and thus the risk of misappropriation.              
                                                                              
    II.   Cash Cycle                                                          
                                                                              
    Disbursements from bank accounts                                          
                                                                              
    Insufficient control in authorization of cheques                          
                                                                              
    There is a lack of control in cheque issuances. HLB recommends that the   
    Company should establish a monetary level control whereby two signatures  
     be required for paying out disbursements to anyone in excess of such     
    monetary level. Previously, all cheque payments were authorised by        
    either of the two executive directors, namely Mr. Wong Chor Wo and Ms.    
    Rosita Andres in any amounts.                                             
                                                                              
    Recommendations for Rectification of Deficiency                           
                                                                              
    In order to enhance the control in cheque authorisation procedures, HLB   
    recommends that at least 2 signatures be required to approve any          
    issuance of cheques with amounts beyond certain preset limits.            
                                                                              
    Establishment of imprest account