11:28     IPE GROUP<00929> - Announcement & Resumption (7)                    

    of this announcement.                                                     
                                                                              
    USE OF IPO PROCEEDS                                                       
    As at the date of this announcement, the net proceeds                     
    from the IPO have been fully utilised in accordance                       
    with the intended use of proceeds as disclosed in the                     
    Prospectus. The following table shows the planned use                     
    of IPO proceeds as disclosed in the Prospectus, the                       
    actual use of IPO proceeds as disclosed in the 2004                       
    annual report of the Company and as at the date of                        
    this announcement:                                                        
                                                                              
    Actual use of           Actual use of                                     
                    IPO proceeds as          IPO proceeds                     
    Planned use of IPO              per 2004 annual                  as at    
    the date of                                                               
    proceeds as per                 report of the            this             
    announcement                                                              
    Prospectus (based on            Company (based on                         
    (based on                                                                 
    indicative offer price of               actual offer price of             
                    actual offer price of                                     
    HK$0.72 per Share)              HK$0.77 per Share)                        
            HK$0.77 per Share)                                                
    HK$ million             HK$ million             HK$ million               
                                                                              
    Capital expenditure in relation to the                                    
      Zengcheng Development Project 31.6            31.6                      
            31.6                                                              
    Capital expenditure in relation to the acquisition                        
      of new machineries for upgrading the production                         
      facilities of the Group       26.0            13.8            26.0      
    Research and development of new product range                             
            3.5             2.2             3.5                               
    Expansion of overseas and PRC markets   1.5                               
            1.1             1.5                                               
    General working capital of the Group    5.0                               
            23.1    (Note)  9.2                                               
                                                                              
                                                                              
    Total   67.6            71.8            71.8                              
                                                                              
                                                                              
    Note:   The unused proceeds from the IPO for use in                       
    relation to the acquisition of new machineries for                        
    upgrading the production facilities of the Group was                      
    kept as the general working capital of the Group as                       
    disclosed in the 2004 annual report of the Company.                       
                                                                              
    RESUMPTION OF TRADING                                                     
    At the request of the Company, trading in the Shares                      
    has been suspended with effect from 2:30 p.m. on 10                       
    May 2005 pending the issue of this announcement.                          
    Application has been made by the Company to the Stock                     
    Exchange for the resumption of trading in the Shares                      
    with effect from 9:30 a.m. on 13 May 2005.                                
                                                                              
    DEFINITIONS                                                               
    In this announcement, unless the context otherwise                        
    requires, the following expressions shall have the                        
    following meaning:                                                        
                                                                              
    "Company"       IPE Group Limited, a company incorporated                 
    in the Cayman Islands with limited liability and the                      
    issued Shares of which are listed on the main board                       
    of the Stock Exchange                                                     
                                                                              
    "connected person(s)"   has the meaning ascribed to                       
    this term under the Listing Rules                                         
                                                                              
    "Directors"     directors of the Company                                  
                                                                              
    "Group" the Company and its subsidiaries