09:17     FORTUNA INT'L<00530> - Announcement                                 

    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 however arising from or in                        
    reliance upon the whole or any part of the contents                       
    of this announcement.                                                     
                                                                              
    FORTUNA INTERNATIONAL HOLDINGS LIMITED                                    
    (Incorporated in Bermuda with limited liability)                          
    (Stock code: 530)                                                         
                                                                              
    DISCLOSEABLE TRANSACTION                                                  
    TERMINATION OF THE                                                        
    ACQUISITION OF 30% INTERESTS IN                                           
    NEW GRAND HOTEL COMPANY LIMITED                                           
                                                                              
    Reference is made to the Announcements in relation to                     
    the conditional agreement dated 20th January 2005 made                    
    between Ms. Lam as the Vendor and Everacme Management                     
    Limited, a subsidiary of the Company, as the Purchaser,                   
    for the sale and purchase of 30% interests in the Target                  
    Company.                                                                  
                                                                              
    The conditions precedent to the Agreement had not been                    
    fulfilled on 20th May 2005, being the Long Stop Date                      
    of the Agreement. The Purchaser has no further                            
    obligation to proceed with the acquisition under the                      
    Agreement accordingly.                                                    
                                                                              
    Reference is made to the announcements of the Company                     
    dated 15th February 2005 and 2nd March 2005 (the                          
    "Announcements") in relation to the conditional                           
    agreement dated 20th January 2005 made between Ms. Lam                    
    as the Vendor and Everacme Management Limited, a                          
    subsidiary of the Company, as the Purchaser, for the                      
    sale and purchase of 30% interests in the Target                          
    Company. Terms used herein shall have the same                            
    meanings as defined in the Announcements unless the                       
    context otherwise requires.                                               
                                                                              
    The Agreement was subject to conditions (as set out                       
    in the Announcements) which had to be fulfilled by 20th                   
    March 2005 (or such later date as the parties may agree                   
    in writing) (the "Long Stop Date"). By agreement                          
    between the Purchaser and the Vendor on 16 March 2005,                    
    the Long Stop Date was extended to 20th May 2005 (or                      
    such later date as the parties may agree in writing).                     
    Up to 20th May 2005, the Vendor had failed to fulfil                      
    certain conditions precedent to the Agreement,                            
    including, amongst other things, delivery of a Macau                      
    legal opinion to the Purchaser confirming the right                       
    of the Target Company to use and occupy the Hotel. No                     
    further agreement has been reached between the Vendor                     
    and the Purchaser to further extend the Long Stop Date.                   
    As the conditions precedent to the Agreement had not                      
    been fulfilled by the Long Stop Date and the Purchaser                    
    has not waived such conditions, the Purchaser has no                      
    further obligation to proceed with the acquisition of                     
    30% interest in the Target Company under the Agreement                    
    accordingly. The Vendor shall repay the deposit of                        
    HK$1,000,000 (without interest) to the Purchaser                          
    under the Agreement immediately.                                          
                                                                              
    The Directors are of the view that the termination of                     
    the Agreement would not have any material impact on                       
    the financial position and the existing business                          
    operations of the Group.                                                  
                                                                              
    As at the date of this announcement, Mr. Kwok Ying Chuen                  
    and Mr. Yu Won Kong, Dennis are the executive Directors;                  
    Mr. Tso Hon Sai, Bosco, Mr. Kwok Chi Sun, Vincent and                     
    Mr. Cheng Wing Keung, Raymond are the independent                         
    non-executive Directors.                                                  
                                                                              
    By order of the board of                                                  
    Fortuna International Holdings Limited                                    
    Kwok Ying Chuen                                                           
    Director                                                                  
                                                                              
    Hong Kong, 23rd May 2005