09:26     LAI SUN INT'L<00191>-Announcement&Resumption of Trading (3)         

    The subscription price of HK$0.50 per Rights Share was determined         
    with reference to recent closing prices of the Shares on the Stock        
    Exchange and represents (i) a discount of approximately 5.7% to           
    the closing price of HK$0.53 per Share quoted on the Stock Exchange       
    on 12th May, 2005 (the last trading day prior to the suspension           
    of trading); (ii) a discount of approximately 5.1% to the                 
    theoretical ex-rights price of HK$0.527 per Share based on that           
    closing price per Share on 12th May, 2005 (the last trading day           
    prior to the suspension of trading); (iii) a discount of                  
    approximately 9.1% to the average closing price of HK$0.55 per            
    Share for the last ten full trading days prior to the date of this        
    announcement; (iv) a discount of approximately 7.4% to the                
    theoretical ex-rights price of HK$0.54 per Share based on the             
    average closing price of HK$0.55 per Share for the last ten full          
    trading days prior to the date of this announcement; and (v) a            
    discount of approximately 68.35% to the unaudited consolidated net        
    assets per share of the Company as at 31st January, 2005 of HK$1.58       
    with reference to the unaudited consolidated net assets of the            
    Company as disclosed in its interim report dated 15th April, 2005.        
                                                                              
    Basis of provisional allotments                                           
                                                                              
    One Rights Share for every eight Shares held by a Qualifying              
    Shareholder on the Record Date.                                           
                                                                              
    Status of the Rights Shares                                               
                                                                              
    When fully paid, issued and allotted, the fully-paid Rights Shares        
    will rank pari passu in all respects with the Shares then in issue.       
    Holders of fully-paid Rights Shares will be entitled to receive           
    all future dividends and distributions which are declared, made           
    or paid after the date of issue and allotment of the fully-paid           
    Rights Shares.                                                            
                                                                              
    Dealings in nil-paid and fully-paid Rights Shares will be subject         
    to the payment of stamp duty in Hong Kong.                                
                                                                              
    Rights of Non-Qualifying Shareholders                                     
                                                                              
    The Prospectus Documents will not be registered or filed under the        
    applicable securities or equivalent legislation of any                    
    jurisdictions other than Hong Kong. If on the date of book close,         
    there are Shareholders whose registered addresses recorded in the         
    register of members of the Company are in jurisdictions outside           
    Hong Kong, the Company will, in compliance with Rule 13.36(2)(a)          
    of the Listing Rules, make enquiries regarding the legal                  
    restrictions under the laws of the relevant place and the                 
    requirements of the relevant regulatory body or stock exchange and        
    may only exclude such overseas Shareholders from the offer of the         
    Rights Shares on the basis that, having made such enquiries, it           
    would be necessary or expedient to do so. The Company will not offer      
    the Rights Shares to the Non-Qualifying Shareholders, that is,            
    Shareholders whose names appear on the register of members of the         
    Company as at the close of business on the Record Date but whose          
    registered addresses as shown on the register of members of the           
    Company are outside Hong Kong, and to whom the Directors, 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, consider it necessary or               
    expedient not to offer any Rights Shares. Accordingly, no                 
    provisional allotment of Rights Shares will be made to                    
    Non-Qualifying Shareholders. The Company will send copies of the          
    Prospectus to Non-Qualifying Shareholders for their information           
    only. The Company will not send provisional allotment letters or          
    forms for application for excess Rights Shares to Non-Qualifying          
    Shareholders.                                                             
                                                                              
    The Company will make arrangements for the Rights Shares, which           
    would otherwise have been provisionally allotted to                       
    Non-Qualifying Shareholders, to be sold in the market in their            
    nil-paid form as soon as practicable after dealing in the nil-paid        
    Rights Shares commences, if a premium (net of expenses) can be            
    obtained. The proceeds of each sale, less expenses, of HK$100 or          
    more will be paid to Non-Qualifying Shareholders in Hong Kong             
    dollars pro rata to their respective shareholding as soon as              
    practicable. The Company will retain individual amounts of less           
    than HK$100. Any such unsold Rights Shares will be available for          
    excess application.