10:09     DECCA HOLDINGS<00997> - Announcement (2)                            

    As at the Announcement Date, the details of the Financial                 
    Assistances to and the Guarantees given for facilities granted            
    to Vielie by the Group which in aggregate exceeds 8% of its Market        
    Capitalization are set out below:                                         
                                                                              
                            Total Financial                                   
    Affiliated      Attributable interest   Total Financial                   
            Total Guarantees        Assistances &   % of Market               
    Company held by the Group       Assistances Given       Given             
            Guarantees Given        Capitalization                            
            HK$'000 HK$'000 HK$'000                                           
                                                                              
    Vielie  50%     11,667  3,425   15,092  12.7%                             
                                    (see note 3)                              
                                                                              
    Notes:                                                                    
                                                                              
    1.      The average closing price of the Group for the five business      
    days immediately before 18 May 2004 was HK$0.5 per share and              
    the Market Capitalization of 200,000,000 shares was                       
    HK$100,000,000.                                                           
                                                                              
    2.      The average closing price of the Group for the five business      
    days immediately before 30 September 2004 was HK$0.66 per share           
    and the Market Capitalization of 200,000,000 shares was                   
    HK$132,000,000.                                                           
                                                                              
    3.      The average closing price of the Group for the five business      
    days immediately before the Announcement Date was HK$0.592 per            
    share and the new Market Capitalization of 200,000,000 shares             
    was HK$118,400,000.                                                       
                                                                              
    The Financial Assistances are interest free, unsecured and                
    repayable on demand and are funded by the Group's internal                
    resources. The Guarantees are given by the Group to the banks             
    which provided finance leases on machines to Vielie. The finance          
    leases guaranteed by the Group at the Announcement Date has been          
    reduced from the original balance of HK$3,425,000 to the current          
    balance of HK$2,261,000 after deducting monthly repayments made           
    by Vielie. Both the Financial Assistances and Guarantees are              
    given by the Group to Vielie in proportion to the Group's                 
    shareholding on several basis and provided whenever it is                 
    required. The remaining shareholder of Vielie also provides               
    financial assistances and guarantees to Vielie in proportion              
    to its shareholding in Vielie on same terms.                              
                                                                              
    As at the Announcement Date, the Group did not have any committed         
    capital injection to Vielie.                                              
                                                                              
    Reasons for the Delay in Publication of this Announcement                 
                                                                              
    Prior to 31 March 2004, advances to an entity or to an Affiliated         
    Company were not subject to the disclosure requirements as such           
    advances did not exceed 25% of the net assets of the Group.               
                                                                              
    At all material time, except for the percentage ratio under the           
    consideration test, none of the other percentage ratios in                
    respect of the Financial Assistances and Guarantees to Vielie             
    exceeds the 8% or the 5-25% threshold under Rule 13.13, 13.16             
    and 14.06(2) of the Listing Rules respectively.                           
                                                                              
    The Directors misinterpreted that the relevant disclosure of              
    the Financial Assistances and Guarantees in the Company's                 
    2004/2005 Interim Report would constitute sufficient disclosure           
    to the shareholders and that a separate announcement for                  
    disclosure was not necessary. The Directors were subsequently             
    advised that the disclosure of the Financial Assistances and              
    Guarantees to Vielie required a separate announcement and                 
    publication of circular is required because the nature of advance         
    falls within the definition of "transaction"