10:32 HON PO GROUP<00228> - Announcement (10) Pre-Consolidation Share certificates for the Pre-Consolidation Shares can be traded at this counter. All Pre-Consolidation Share certificates for the Pre-Consolidation Shares will be valid for settlement and delivery for trading transacted at this counter on the basis that every 5 Pre-Consolidation Shares represent one Share; (ii) with effect from 9:30 a.m. on Thursday, 12th May, 2005, trading on the original counter (stock code: 228 HON PO GP-NEW) will remain and become a counter for trading in the Shares in new board lots of 20,000 Shares. Only new share certificates for the Shares can be traded at this counter. (iii) the temporary counter for trading in the Shares in board lots of 2,000 Shares (represented by Pre-Consolidation Share certificates for the Pre-Consolidation Shares) will be removed after 4:00 p.m. on Thursday, 2nd June, 2005. Thereafter, trading will only be in new share certificates for the Shares (stock code: 228 HON PO GROUP) in board lots of 20,000 Shares. The Pre-Consolidation Share certificates for the Pre-Consolidation Shares will then cease to be marketable and will not be acceptable for trading and settlement purposes but will remain effective as documents of title on the basis of every 5 Pre-Consolidation Shares for one Share. The Company has appointed Yicko Securities Limited of 19th Floor, Tung Ning Building, 2 Hillier Street, Sheung Wan, Hong Kong to stand in the market to facilitate the sale and purchase of odd lots of Shares during the period from Thursday 12th May, 2005 to Thursday 2nd June, 2005 (both days inclusive). Holders of Shares in odd lots who wish to take advantage of this facility either to dispose of or top up their odd lots to a board lot of 20,000 Shares may, directly or through their brokers, contact either Mr. Chan Choi Wah at 2850 4695 or Mr. Wong Wai Ming at 2541 3448 of Yicko Securities Limited during such period. Shareholders should note that successful matching of sale and purchase of odd lots of Shares is not guaranteed. (6) CLARIFICATIONS Reference is made to (1) the suspension in trading of the shares of the Company, at the request of the Company, with effect from 3:26 p.m. on the Last Trading Day, pending an announcement to be made by the Company in connection with new price sensitive information and (2) the Article regarding an alleged disposal of business by the Company and an alleged transfer of controlling interest in the Company to a large Mainland Chinese food and beverages group. The Board noted increases in share price and trading volume of the shares of the Company on 23rd March, 2005 and summarize the movement of the trading price of the shares of the Company and the sequence of events on that date as follows:- The lowest The highest Pre-Consolidation Pre-Consolidation Trading Time period Share trading price Share trading price Events HK$ HK$ 10:00 a.m. - 2:58 p.m. 0.070 0.172 At around 12:00 p.m., the Stock Exchange made enquiries of the Company regarding the increase in price and trading volume of shares of the Company, as Pre-Consolidation Share price rose by 25.71% from HK$0.07 to HK$0.088 during 11:28 a.m. to 12:00 p.m. A written statement pursuant to rule 13.10 of the Listing Rules was published at around 2:58 p.m. in teletext. 2:59 p.m. - 3:15 p.m. 0.171 0.230 A Director was approached by the Placing Agent at approximately 3:15 p.m. in relation to a possible placing of convertible notes. 3:16 p.m. - 3:26 p.m. 0.175 0.200 In view of the movements in price and trading volume of the Pre-Consolidation Shares earlier in the day, the Company having decided to pursue discussions with the Placing Agent, requested that trading of the Pre-Consolidation Shares be suspended. Trading of the Pre-Consolidation Shares was suspended with effect from 3:26 p.m.. The Board wishes to clarify that the Directors are not aware of any reasons for such increase and that, save for the proposed Placing and the possible First Convertible Notes issues, Directors are not aware of any negotiations or agreements relating to intended acquisitions or realizations which are discloseable under rule 13.23 of the Listing Rules, neither is the Board aware of any matter discloseable under the general obligation imposed by rule 13.09 of the Listing Rule, which is or may be of a price-sensitive nature. The Board noted that the Article referred to an alleged disposal of business by the Company and an alleged transfer of controlling interest