10:52     FORTUNA INT'L<00530> - 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 however arising from or in                        
    reliance upon the whole or any part of the contents                       
    of this announcement.                                                     
                                                                              
    FORTUNA INTERNATIONAL HOLDINGS LIMITED                                    
    (Incorporated in Bermuda with limited liability)                          
    (Stock code: 530)                                                         
                                                                              
    ANNOUNCEMENT                                                              
    DISCLOSEABLE TRANSACTION                                                  
    ACQUISITION OF 30% INTERESTS IN                                           
    NEW GRAND HOTEL COMPANY LIMITED                                           
    AND                                                                       
    UNUSUAL PRICE MOVEMENT AND TRADING VOLUME                                 
                                                                              
    Reference is made to the Announcements in relation                        
    to the conditional agreement dated 20th January 2005                      
    made between Ms. Lam as the Vendor and Everacme                           
    Management Limited, a subsidiary of the Company, as                       
    the Purchaser, for the sale and purchase of 30%                           
    interests in the Target Company. Up to the date hereof,                   
    the Circular in relation to the Acquisition has not                       
    been despatched to the Shareholders for the reasons                       
    stated in this announcement.                                              
                                                                              
    The Directors have noted the decrease in the price                        
    and increase in the trading volume of the Shares on                       
    12th May 2005.                                                            
                                                                              
    Reference is made to the announcements of the Company                     
    dated 15th February 2005 and 2nd March 2005 (the                          
    "Announcements") in relation to the conditional                           
    agreement dated 20th January 2005 made between Ms.                        
    Lam as the Vendor and Everacme Management Limited,                        
    a subsidiary of the Company, as the Purchaser, for                        
    the sale and purchase of 30% interests in the Target                      
    Company. Terms used herein shall have the same                            
    meanings as defined in the Announcements unless the                       
    context otherwise requires.                                               
                                                                              
    The Company announced on 19th April 2005 that the                         
    parties to the Agreement have agreed to extend the                        
    long stop date of the Agreement from 20th March 2005                      
    to 20th May 2005 ("Long Stop Date") as further time                       
    is required to conduct the due diligence review on                        
    the Target Company, in particular, in respect of the                      
    title of the Target Company in the Hotel. As requested                    
    by the Stock Exchange, the Circular should contain                        
    information regarding whether the Target Company has                      
    the right to use, occupy and manage the Hotel. As such,                   
    the despatch of the circular of the Company                               
    ("Circular") in relation to the Acquisition was                           
    further delayed to 11th May 2005.                                         
                                                                              
    Up to the date of this announcement, the Company is                       
    still liaising with the Vendor for the necessary                          
    documentation regarding the Target Company's right                        
    to use, occupy and manage the Hotel. As such, the                         
    Circular was not despatched to the Shareholders on                        
    11th May 2005.                                                            
                                                                              
    In view that the Long Stop Date has been extended,                        
    the Vendor has up to 20th May 2005 to fulfill the                         
    conditions precedent to the Agreement, which include,                     
    amongst other things, delivery of a Macau legal                           
    opinion confirming the Target Company has a valid                         
    title to the Hotel. The Company will make further                         
    announcement to inform the Shareholders if                                
    information regarding the Hotel is obtained on or                         
    before 20th May 2005. The Circular will be despatched                     
    to the Shareholders as soon as possible when such                         
    information is obtained.                                                  
                                                                              
    Unusual price movement and trading volume                                 
    The Directors have noted the decrease in the price                        
    and increase in the trading volume of the Shares on                       
    12th May 2005.