09:38     YUGANG INT'L<00613> & QUALIPAK INT'L<01224> - Joint Ann. (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.                                                     
                                                                              
                                                                              
    YUGANG INTERNATIONAL LIMITED    QUALIPAK                                  
    INTERNATIONAL                                                             
    HOLDINGS LIMITED                                                          
    (Incorporated in Bermuda with limited liability)                          
            (Incorporated in Bermuda with limited liability)                  
    (Stock Code: 613)       (Stock Code: 1224)                                
                                                                              
    JOINT ANNOUNCEMENT                                                        
    DISCLOSEABLE TRANSACTION                                                  
    ACQUISITIONS OF PROPERTY INTERESTS                                        
                                                                              
    On 12 May 2005, the First Purchaser entered into the                      
    First S&P Agreement with the First Vendor, pursuant                       
    to which the First Purchaser agreed to purchase, and                      
    the First Vendor agreed to sell, the First Property                       
    for a cash consideration of HK$35,000,000.                                
                                                                              
    On 12 May 2005, the Second Purchaser entered into the                     
    Second S&P Agreement with the Second Vendor pursuant                      
    to which the Second Purchaser agreed to purchase, and                     
    the Second Vendor agreed to sell, the Second Property                     
    for a cash consideration of HK$43,000,000.                                
                                                                              
    Qualipak is a 64.54%-owned subsidiary of Yugang. The                      
    Acquisitions in aggregate constitute a discloseable                       
    transaction of each of Yugang and Qualipak under Rule                     
    14.06 of the Listing Rules. Each of Yugang and                            
    Qualipak will despatch to its shareholders a circular                     
    containing further particulars of the Acquisitions                        
    as soon as possible in accordance with the                                
    requirements of the Listing Rules.                                        
                                                                              
    FIRST S&P AGREEMENT                                                       
                                                                              
    Date: 12 May 2005                                                         
                                                                              
    Parties:                                                                  
    1.      Great Gains International Limited, being the First                
    Vendor. The First Vendor is a property investment                         
    company incorporated in Hong Kong with limited                            
    liability. To the best of the knowledge, information                      
    and belief of the directors of Yugang and the                             
    directors of Qualipak, after having made all                              
    reasonable enquiries, the First Vendor and its                            
    ultimate beneficial owners are not connected with any                     
    of the directors, chief executive or substantial                          
    shareholder(s) of Yugang or Qualipak or their                             
    respective subsidiaries or their respective                               
    associate(s).                                                             
                                                                              
    2.      Empire New Assets Limited, a wholly-owned                         
    subsidiary of Qualipak, being the First Purchaser.                        
                                                                              
    Asset to be acquired:                                                     
    The First Property. The First Property has a gross                        
    floor area of approximately 10,963 sq. ft. and is                         
    valued at approximately HK$35,000,000 as at 11 May                        
    2005 by Savills (Hong Kong) Limited, an independent                       
    valuer appointed by Qualipak. The First Property will                     
    be sold subject to and with the benefit of the Tenancy                    
    Agreement in favour of Qualipak Manufacturing Limited,                    
    a wholly-owned subsidiary