08:53 LANG CHAO INTL<08141> - Announcement & Resumption of Trading This announcement appears for information purposes only and does not constitute an invitation or offer to acquire, purchase or subscribe for securities. 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. LANG CHAO INTERNATIONAL LIMITED (Incorporated in the Cayman Islands with limited liability) (Stock Code: 8141) PLACING OF NEW SHARES AND RESUMPTION OF TRADING Placing Agent Guotai Junan Securities (Hong Kong) Limited On 13 May 2005, the Company and the Placing Agent entered into the Placing Agreement, pursuant to which the Company has agreed to place, through the Placing Agent, up to an aggregate of 52,000,000 Placing Shares to not less than six professional, institutional and/or private investors who will be third parties independent of the Company and its connected persons, at a placing price of HK$0.36 per Placing Share. The Placing Shares are placed by the Placing Agent on a best effort basis. The Placing Price represents (i) a discount of approximately 7.69% to the closing price of HK$0.39 per Share as quoted on GEM on 13 May 2005, being the last trading day before the date of this announcement; and (ii) a discount of approximately 7.69% to the average of the closing prices of HK$0.39 per Share as quoted on GEM for the last five consecutive trading days up to and including 13 May 2005. The Placing Shares represent (i) 13% of the issued share capital of the Company as at the date of this announcement; (ii) approximately 11.5% of the issued share capital of the Company as enlarged by the allotment and issue of the Placing Shares. The net proceeds derived from the Placing of about HK$18.5 million will be applied for general working capital to support further growth of its existing business in relation to the sale of central processing units in anticipation of the growing demand from PRC customers, and/or future investment for the Group should opportunities arise. At the request of the Company, trading in the Shares on GEM has been suspended with effect from 9:30 a.m. on 17 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 on GEM with effect from 9:30 a.m. on 18 May 2005. By order of the board of directors of Lang Chao International Limited Sun Pishu Chairman Hong Kong, 17 May 2005 As at the date of this announcement, the Board comprised Mr. Sun Pishu, Mr. Zhang Lei, Mr. Wang Miao and Mr. Leung Chi Ho as executive Directors, Mr. Xin Wei Hua and Mr. Wang Hung, Alex as non-executive Directors, and Mr. Meng Xiang Xu, Mr. Liu Ping Yuan and Mr. Wong Lit Chor, Alexis as independent non-executive Directors. This announcement, for which the Directors collectively and individually accept full responsibility, includes particulars given in compliance with the GEM Listing Rules for the purpose of giving information with regard to the Company. The Directors, having made all reasonable enquiries, confirm that, to the best of their knowledge and belief: (1) the information contained in this announcement is accurate and complete in all material respects and not misleading; (2) there are no other matters the omission of which would make any statement in this announcement misleading; and (3) all opinions expressed in this announcement have been arrived at after due and careful consideration and are founded on bases and assumptions that are fair and reasonable. The above announcement is a summary only. For the full version of this announcement, please refer to the `Latest Company Announcements' page on the GEM website at www.hkgem.com.