09:18 PRIME INVEST<00721> - 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. PRIME INVESTMENTS HOLDINGS LIMITED (incorporated in the Cayman Islands with limited liability) (Stock Code: 721) RESIGNATION OF DIRECTORS, RE-DESIGNATION OF DIRECTOR The Board announces that Mr. Lau Sze Shing, Edward has tendered his resignation as chairman of the Board, executive Director and Authorised Representative on 22 February 2005 with immediate effect. The reasons for his resignation are set out below. Mr. Lan Ning has been appointed as the Authorised Representative with effect from 28 February 2005 to take up the vacancy left by Mr. Lau's departure. Mr. Lan Ning has also been re-designated as an executive Director from his previous position as a non-executive Director, also with effect from 28 February 2005. The Board also announces that Ms. Chan Man Yee had tendered her resignation as a non-executive Director with effect from 10 March 2005. Ms. Chan confirmed that she resigned due to personal reasons and she has no disagreement with the Board and that there are no circumstances connected with her resignation that needs to be brought to the attention of the Shareholders. Reference is made to the announcement of the Company dated 17 January 2005 in relation to the appointment of Ms. Wang Wen Xia as an executive Director with effect from 15 January 2005. The Board wishes to clarify that Ms. Wang Wen Xia was appointed as the chief executive officer of the Company as well as an executive Director on 15 January 2005. Trading in shares of the Company on the Stock Exchange was suspended at the request of the Company from 9:30 a.m. on 14 February 2005 and will remain suspended pending the demonstration by the Company to the satisfaction of the Stock Exchange that, among others, the continual listing of the shares of the Company is warranted. RESIGNATION OF MR. LAU SZE SHING, EDWARD AS DIRECTOR AND AUTHORISED REPRESENTATIVE The board (the "Board") of directors (the "Directors") of Prime Investments Holdings Limited (the "Company") announces that Mr. Lau Sze Shing, Edward ("Mr. Lau") has tendered his resignation as chairman of the Board, executive Director and authorised representative ("Authorised Representative") of the Company on 22 February 2005 with immediate effect. Mr. Lau was not the investment manager of the Company or an employee of or otherwise related to the investment manager of the Company. The Company was advised by Mr. Lau on 8 February 2005 that certain allegations were made against Mr. Lau in connection with a private company of which Mr. Lau is a shareholder and director for the period between August 2002 and January 2004 and that the case had come under police investigation. Due to the fact that their information is potentially price sensitive, trading in shares of the Company on the Stock Exchange was suspended at the request of the Company from 9:30 a.m. on 14 February 2005, being the next trading day. The Company had enquired with Mr. Lau who advised that the allegations were made against Mr. Lau personally and had nothing to do with the Company. The Company had also enquired with Mr. Lau's solicitors who had advised the same in writing. Mr. Lau had indicated to the Company that he would be defending the allegations, but is not in a position to disclose any particulars of the allegations for the time being since the case is still under police investigation and any disclosure of information may lead to perverting the course of justice. Mr. Lau had also advised that no charges have been laid against him. In the meantime, Mr. Lau has resigned from the Board, considering that doing so would be in the best interest of the Company in light of the allegations, and would clarify the matter with the Board when the case is finalised. The Company will make further announcement in relation to the development of the case of Mr. Lau once the case is concluded.