09:25 LAI SUN INT'L<00191>-Announcement&Resumption of Trading (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 liabilities whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. LAI SUN GARMENT Lai Sun Garment (International) Limited (Incorporated in Hong Kong with limited liability) (Stock Code: 191) Proposed Rights Issue in the Proportion of One Rights Share for Every Eight Shares Held at HK$0.50 per Rights Share, and Resumption of Trading of Shares Underwriter DBS THE RIGHTS ISSUE The Company proposes to raise approximately HK$89.9 million, before expenses, by issuing 179,713,713 new Shares by way of rights issue at a price of HK$0.50 per Rights Share on the basis of one Rights Share for every eight Shares held on the Record Date. The Company will provisionally allot one Rights Share for every eight Shares held by the Qualifying Shareholders on the Record Date. The Rights Issue is only available to the Qualifying Shareholders. As at the date of this announcement, the Major Shareholders are interested in an aggregate of 603,907,491 Shares, representing approximately 42% of the existing issued share capital of the Company. The Major Shareholders have undertaken to take up their respective entitlements under the Rights Issue in full. The Rights Issue is fully underwritten by the Underwriter, other than those Rights Shares undertaken to be accepted by the Major Shareholders by way of their rights entitlement. As at the date of this announcement, the authorized share capital of the Company is HK$2,000 million divided into 4,000,000,000 Shares of HK$0.50 each. The Rights Issue is conditional upon, among other things, the grant of the listing approval of the Rights Shares by the Stock Exchange (see the section headed ``Conditions of the Rights Issue'' below), and is further subject to the Underwriter not terminating the Underwriting Agreement as referred to in the paragraph headed ``Termination of the Underwriting Agreement'' below. Accordingly, the Rights Issue may or may not proceed. To qualify for the Rights Issue, a Shareholder must be a Qualifying Shareholder on the Record Date. Any transfers of Shares (with relevant certificates) must be lodged for registration by 4:30 p.m. on 1st June, 2005 with the Company's share registrar, Tengis Limited at Ground Floor, Bank of East Asia Harbour View Centre, 56 Gloucester Road, Wanchai, Hong Kong. The register of members of the Company will be closed from 2nd June, 2005 to 15th June, 2005 (both days inclusive). No transfer of Shares will be registered during this period. Existing Shares will be dealt in on an ex-rights basis from 31st May, 2005. Any buying or selling of the Shares from now up to the date on which all the conditions to which the Rights Issue is subject are fulfilled, and any buying or selling of nil-paid Rights Shares, is at investors' own risk. The Directors believe that it is in the interest of the Company and the Shareholders to implement the Rights Issue and consider that the Rights Issue will strengthen the capital base and the financial position of the Group. The net proceeds of the Rights Issue are estimated to be approximately HK$85.8 million (on the basis that 179,713,713 new Shares will be issued under the Rights Issue). The Directors intend to use the proceeds of the Rights Issue in the manner as described below in this announcement. The Rights Issue does not require approval from the Shareholders of the Company. The Prospectus containing, inter alia, further details of the proposed Rights Issue will be sent to the Shareholders on or about 15th June, 2005.