10:31     HON PO GROUP<00228> - Announcement (9)                              

    The issue of the Convertible Notes and the First Convertible Notes,       
    the                                                                       
    issue and allotment of Shares which fall to be issued upon conversion     
    of                                                                        
     them, and the proposed increase in authorised share capital of the       
    Company all require the approval of Shareholders. At the request of       
    the                                                                       
    Stock Exchange, the controlling shareholder of the Company will abstain   
    from voting on the resolutions to approve the issue of those convertible  
     notes and the issue and allotment of Shares on their conversion and      
    an                                                                        
    independent financial adviser will be appointed to advise on the          
    fairness of the conversion price of those convertible notes in the        
    context of the proposed issue of the First Convertible Notes and the      
    Convertible Notes respectively. Separate resolutions in respect of the    
    issue of the Convertible Notes and the First Convertible Notes will       
    be                                                                        
    put to Shareholders. Accordingly, there is a possibility that either      
    or                                                                        
    both or neither of the proposed convertible notes issues will proceed.    
                                                                              
    Accordingly, a shareholders circular containing further details of the    
    Placing and the proposed increase in authorised share capital, together   
    with a letter of advice from an independent financial adviser of the      
    Company and a letter from the independent board committee of the Company  
     in respect of the proposed placing of the Convertible Notes and the      
    First Convertible Notes and a notice of EGM will be despatched to         
    Shareholders as soon as practicable.                                      
                                                                              
    (5)   SHARE CONSOLIDATION                                                 
                                                                              
    As stated in the Company's announcement dated 8th April, 2005, the Share  
     Consolidation took effect on 11th April, 2005. In view of the            
    suspension of trading in the shares of the Company since the Last         
    Trading Date, the timetable for the interim trading of Shares is revised  
     as follows:-                                                             
                                                                              
       2005                                                                   
                                                                              
    First day for free exchange of Pre-Consolidation Share                    
      certificates (for the Pre-Consolidation Shares) for                     
      new Share certificates for the Shares   11th April                      
                                                                              
    Trading in the Shares resumes   9:30 a.m. on 12th May                     
                                                                              
    Change of board lot from 10,000 Pre-Consolidation Shares                  
      to 20,000 Shares becomes effective   9:30 a.m. on 12th May              
                                                                              
    Temporary counter for trading in the Shares in board                      
      lots of 2,000 Shares (in the form of Pre-Consolidation                  
      Share certificates) opens     9:30 a.m. on 12th May                     
                                                                              
    Original counter for trading in the Shares in board lots of               
      20,000 Shares (in the form of new Share certificates)                   
      commences   9:30 a.m. on 12th May                                       
                                                                              
    Parallel trading in the Shares (in the form of new Share                  
      certificates and Pre-Consolidation Share certificates)                  
      commences   9:30 a.m. on 12th May                                       
                                                                              
    Temporary counter for trading in the Shares in board lots                 
      of 2,000 Shares (in the form of Pre-Consolidation Share                 
      certificates) closes    4:00 p.m. on 2nd June                           
                                                                              
    Parallel trading in the Shares (in the form of new Share                  
      certificates and Pre-Consolidation Share certificates) ends    4:00     
    p.m. on 2nd June                                                          
                                                                              
    Last day for free exchange of Pre-Consolidation Share                     
      certificates for new Share certificates   6th June                      
                                                                              
    Shareholders may, during business hours from 11th April, 2005 to 6th      
    June, 2005 (both dates inclusive), submit their Pre-Consolidation Share   
    certificates for the Pre-Consolidation Shares to the Company's branch     
    registrar in Hong Kong, Tengis Limited, at G/F, Bank of East Asia         
    Harbour View Centre, 56 Gloucester Road, Wanchai, Hong Kong in exchange   
    for new Share certificates for the Shares free of charge. Thereafter,     
    Pre-Consolidation Share certificates for Pre-Consolidation Shares will    
    be accepted for exchange only on payment of a fee for the higher of       
    the                                                                       
    number of old shares certificates submitted and the number of new         
    certificates issued at the rate of HK$2.50 (or such higher amount as      
    may                                                                       
     from time to time be specified by the Stock Exchange) per share          
    certificate.                                                              
                                                                              
    Dealings in the Shares are expected to commence on 9:30 a.m. Thursday,    
    12th May, 2005,                                                           
                                                                              
    (i)   with effect from 9:30 a.m. on Thursday, 12th May, 2005, a           
    temporary counter (stock code: 2973 HON PO GP-OLD) for trading in the     
    Shares in board lots of 2,000 Shares will be established and only