10:06     WEALTHMARK INTL<00039> - Announcement (4)                           

    Observation                                                               
                                                                              
    The Group does not prepare financial budgets on a regular basis and has   
    no formal budgeting processes or procedures.                              
                                                                              
    The Company is still lacking proper and formal budgeting processes or     
    procedures, especially on general ledger account for Inventory and Cost   
    of Sales. Therefore, it is strongly recommended that a systematic         
    budgeting procedure be promptly adopted by the Company.                   
                                                                              
    VIII.   Misappropriation                                                  
                                                                              
    As at the date of this announcement, no evidence of misappropriation of   
    funds has yet been found by HLB based on the scope of work as detailed    
    in the Company's announcement dated 22nd February, 2005.                  
                                                                              
    RESPONSE TO THE PRELIMINARY FINDINGS                                      
                                                                              
    The Company stresses that the above summary represents HLB's preliminary  
     findings during their review period and points raised therefrom are not  
     exhaustive.                                                              
                                                                              
    The Independent Committee has considered, discussed and accepted the      
    findings and recommendation proposed by HLB. The Independent Committee    
    will discuss these matters with the Board and advise the Board to         
    implement the suggestions and recommendations made by HLB. The Directors  
     on the Impendent Committee believe that most of the internal control     
    weaknesses identified in the Report can be rectified through the          
    adoption and execution of the revised Manual based on HLB's               
    recommendations as well as regular review and monitoring of the internal  
     control systems in the future.                                           
                                                                              
    The executive Directors have, in principle, agreed to implement the       
    reasonable proposals of the Independent Committee to closely monitor the  
     internal control system so as to ensure that the revised Manual is       
    strictly followed. Regular management meetings will be held to review     
    the strict compliance with and implementation of the internal control     
    system. The Independent Committee will semi-annually discuss and review,  
     among other matters, the internal control system with the executive      
    Directors and where appropriate, assist in devising measures to           
    strengthen in the internal control system of the Group from time to       
    time.                                                                     
                                                                              
    It is currently anticipated that a 3 month implementation/rectification   
    period be in place with a further revisiting with HLB of the steps taken  
     by the Company thereafterwards.                                          
                                                                              
    INQUIRY AND REVIEW                                                        
                                                                              
    With regards to the Inquiry and Review, these are still ongoing as the    
    books and records of the Company are still in the confines of the ICAC.   
    The Inquiry as to whether proper books and accounts are kept is expected  
     to take another 2 months. A further announcement will be made as and     
    when applicable in respect of the status and findings of the Inquiry and  
     Review. At such time, the Company will announce the corporate            
    governance arrangements in place and whether these and the financial      
    control systems adopted are adequate.                                     
                                                                              
    CORPORATE GOVERNANCE                                                      
                                                                              
    With regards to ensuring good corporate governance by the Company, the    
    Company has requested the assistance of its legal advisers to assist it   
    in adopting the Code on the Governance Practice issued by the Stock       
    Exchange and which became effective on 1st January, 2005 and the          
    implementation of such Code.                                              
                                                                              
    Made by the order of the Board of Wealthmark International (Holdings)     
    Limited, the directors of which individually and jointly accept           
    responsibility of the accuracy of this announcement.                      
                                                                              
    By Order of the Board                                                     
    Wealthmark International (Holdings) Limited                               
    Tse Chung Sing                                                            
    Director                                                                  
                                                                              
    Hong Kong, 6 May, 2005                                                    
                                                                              
    As at the date hereof, the executive Directors are Mr. Wong Chor Sang,    
    Mr. Danny Kwok Kee Ho, Mr. Chan Wai Kin, Benito and Mr. Tse Chung Sing;   
    and the independent non-executive Directors are Mr. Chan Sheung Kwan,     
    Mr. Yang Xi and Mr. Yue Kwai Wa, Ken.