09:19     AV CONCEPT HOLD<00595> - Announcement (3)                           

                                                                              
    LISTING RULES COMPLIANCE                                                  
    At the time of entering into the DM Agreement, the                        
    Directors did not appreciate that the arrangements in                     
    respect of management and investment of the Group's                       
    surplus cash would constitute a transaction under the                     
    Listing Rules and at that time considered that                            
    arrangements under the DM Agreement formed part of the                    
    Group's cash management activities which are in the                       
    ordinary and usual course of business of the Group.                       
    In light of such initial view, the Directors did not                      
    appreciate that the DM Agreement should be mentioned                      
    in the Company's announcement on 4 March 2005 relating                    
    to unusual trading volume of the Company's shares. The                    
    Directors subsequently mentioned the DM Agreement to                      
    the Company's adviser and became aware of the possible                    
    Listing Rules implications, following which the                           
    Directors took the initiative to write to the Stock                       
    Exchange to seek guidance. Following the confirmation                     
    from the Stock Exchange of the applicability of the                       
    Listing Rules to the DM Agreement, it has taken some                      
    time for the Company to sort out, among other things,                     
    certain technical issues regarding the interpretation                     
    of the DM Agreement and the Listing Rules with a view                     
    to finalizing and issuing this announcement. The                          
    Directors apologize for their mistake and the delay                       
    in making this announcement. The Directors now                            
    appreciate the applicability of the Listing Rules to                      
    the DM Agreement and will put in place appropriate                        
    monitoring and consultation procedures to prevent the                     
    occurrence of similar incident in future. The Stock                       
    Exchange has indicated that it is looking into this                       
    matter and may take further action against the Company                    
    and the Directors.                                                        
                                                                              
    GENERAL                                                                   
    As the consideration ratio calculated pursuant to Rule                    
    14.07(4) of the Listing Rules exceeds 5% but falls                        
    below 25%, the DM Agreement constitutes a discloseable                    
    transaction for the Company under Chapter 14 of the                       
    Listing Rules. A circular containing further details                      
    of the DM Agreement will be despatched to Shareholders                    
    as soon as practicable.                                                   
                                                                              
    DEFINITIONS                                                               
    "associates"   has the same meaning as ascribed to it                     
    under the Listing Rules                                                   
                                                                              
    "Authorised Investments"   any asset, right or                            
    interest in respect of property of any kind, including                    
    but not limited to equities, warrants, units or                           
    interests in unit trusts or mutual funds, debentures,                     
    debenture stocks, bonds, notes, certificates of                           
    deposit, exchange bills, treasury bills, annuities,                       
    debt certificates, mortgage bonds, insurance policies,                    
    financial futures contracts, futures and options of                       
    all types, any cash or cash deposits, currencies in                       
    the spot or forward markets, hedging arrangements,                        
    option agreements, all derivatives and such other                         
    financial instruments as UBS may decide from time to                      
    time                                                                      
                                                                              
    "Board"   the board of Directors                                          
                                                                              
    "Company"   AV Concept Holdings Limited, a company                        
    incorporated in the Cayman Islands with limited                           
    liability, the shares of which are listed on the main                     
    board of the Stock Exchange                                               
                                                                              
    "Directors"   the directors of the Company                                
                                                                              
    "DM Agreement"   the discretionary management                             
    agreement (special mandate portfolio) entered into                        
    between New Concept and UBS on 2 March 2005                               
                                                                              
    "Group"   the Company and its subsidiaries                                
                                                                              
    "Hong Kong"   The Hong Kong Special Administrative                        
    Region of the People's Republic of China                                  
                                                                              
    "HK$"   Hong Kong dollars, the lawful currency of Hong                    
    Kong                                                                      
                                                                              
    "Listing Rules"   the Rules Governing the Listing of                      
    Securities on the Stock Exchange                                          
                                                                              
    "New Concept"   New Concept Capital Limited, a wholly                     
    owned subsidiary of the Company