09:26     LAI SUN INT'L<00191>-Announcement&Resumption of Trading (2)         

    The Company will despatch the Prospectus Documents to each of the         
    Qualifying Shareholders and the Prospectus in relation to the             
    Rights Issue to each of the Non-Qualifying Shareholders, for their        
    information only, as soon as practicable.                                 
                                                                              
    Trading in the securities of the Company was suspended at the             
    request of the Company with effect from 9:30 a.m. on 13th May, 2005       
    pending the release of this announcement. Application has been            
    made to the Stock Exchange for the resumption in the trading of           
    the Shares with effect from 9:30 a.m. on 19th May, 2005.                  
                                                                              
    RIGHTS ISSUE                                                              
                                                                              
    Issue Statistics                                                          
                                                                              
    Basis of Rights Issue   :   one Rights Share for every eight              
    Shares held on the Record Date                                            
                                                                              
    Number of existing Shares in issue   :   1,437,709,710 Shares             
                                                                              
    Number of Rights Shares to be issued under the Rights Issue   :           
    179,713,713 new Shares, representing approximately 12.50% of the          
    existing issued share capital of the Company and approximately            
    11.11% of the enlarged issued share capital of the Company                
                                                                              
    Underwriter   :   DBS Asia Capital Limited, a licensed                    
    corporation under the SFO permitted to engage in types 1, 4 and           
    6 of the regulated activities as defined in the SFO                       
                                                                              
    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. There are no existing options, warrants           
    or other securities granted or issued by the Company which are            
    convertible into Shares or confer any right to subscribe for Shares.      
    The Company has undertaken with the Underwriter that on or before         
    the Record Date, the Company will not (i) grant options or issue          
    other securities which confer the right to subscribe for Shares;          
    or (ii) issue any Shares.                                                 
                                                                              
    Qualifying Shareholders:                                                  
                                                                              
    The Company will send provisional allotment letters and forms of          
    application for excess Rights Shares to Qualifying Shareholders           
    only.                                                                     
                                                                              
    To qualify for the Rights Issue, a Shareholder must on the Record         
    Date:                                                                     
                                                                              
    ---   be registered as a member of the Company; and                       
                                                                              
    ---   has an address on the register of members of the Company            
                                                                              
    The Company retains the right, however, in its discretion to vary         
    the requirements set forth above and not to offer Rights Shares           
    to Shareholders with registered addresses recorded on the register        
    of members of the Company outside Hong Kong if, based on the legal        
    advice(s) given by legal counsel(s) of the relevant jurisdiction(s)       
    regarding the legal restrictions under the laws of the relevant           
    place and the requirements of the relevant regulatory body or stock       
    exchange, the Company considers it necessary or expedient to              
    exclude Shareholders with registered addresses outside Hong Kong          
    from the offer of the Rights Shares. In order to be registered as         
    a member of the Company on the Record Date, Shareholders must lodge       
    any transfers of Shares (together with the relevant share                 
    certificate(s)) with the Company's share registrar, Tengis                
    Limited at Ground Floor, Bank of East Asia Harbour View Centre,           
    56 Gloucester Road, Wanchai, Hong Kong by 4:30 p.m. (Hong Kong time)      
    on 1st June, 2005.                                                        
                                                                              
    Closure of Register of Members                                            
                                                                              
    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.                             
                                                                              
    TERMS OF THE RIGHTS ISSUE                                                 
                                                                              
    Subscription price                                                        
                                                                              
    HK$0.50 per Rights Share, payable in full when a Qualifying               
    Shareholder accepts the relevant provisional allotment of Rights          
    Shares or applies for excess Rights Shares or when a transferee           
    of nil-paid Rights Shares applies for Rights Shares.