09:44     HAYWOOD INV<00905> - Announcement (6)                               

    the Listing Rules. The Company is principally engaged in                  
    investments in a diversified portfolio of listed and unlisted             
    companies in Hong Kong and the PRC.                                       
                                                                              
    The Board (including the independent non-executive directors)             
    is of the view that the New IM Agreement has been entered into            
    on normal commercial terms and in the ordinary and usual course           
    of business of the Company, and that the terms of the New IM              
    Agreement are fair and reasonable so far as the Company and its           
    shareholders are concerned.                                               
                                                                              
    The Board is not aware of any other matters that need to be brought       
    to the holders of securities of the Stock Exchange in relation            
    to the change of investment manager, company secretary and                
    authorized representative.                                                
                                                                              
    As at the date of this announcement, the Board is comprised of            
    Mr. Tai Ah Lam, Michael, Mr. Phang Yul Cher Yeow, Mr. Tham Ming           
    Yong and Mr. Tsun Kok Chung, Richard as executive directors,              
    Mr. Cui Zanming as non-executive director, Dr. Wong Yun Kuen,             
    Edward, Mr. Hsieh Dominick and Ms. Lam Lin Chu as independent             
    non-executive directors.                                                  
                                                                              
    DEFINITIONS                                                               
                                                                              
    "Altus Capital" Altus Capital Limited, a company incorporated             
    in Hong Kong, with limited liability and a licensed corporation           
    registered under the SFO                                                  
                                                                              
    "Board" the board of directors of the Company                             
                                                                              
    "Business Day"  a day (other than a Saturday) on which banks in           
    Hong Kong are open for business                                           
                                                                              
    "Company"       Haywood Investments Limited, a company incorporated       
    in the Cayman Islands with limited liability, which shares are            
    traded on the Stock Exchange                                              
                                                                              
    "Financial Year"        financial year of the Company being the           
    twelve (12) months from 1 January to 31 December                          
                                                                              
    "Group" the Company and its subsidiaries                                  
                                                                              
    "Hong Kong"     the Hong Kong Special Administrative Region of the        
    People's Republic of China                                                
                                                                              
    "Hua Yu"        Hua Yu Investment Management Limited, a 91% owned         
    subsidiary of Yu Ming Investment Management Limited and a deemed          
    Licensed Corporation under the SFO permitted to carry on Type             
    4 (advising on securities), Type 6 (advising on corporate finance)        
    and Type 9 (asset management) of the regulated activities                 
                                                                              
    "IM Agreement"  the agreement governing the appointment of Altus          
    Capital as the investment manager of the Company dated 4 March            
    2004 entered into between the Company and Altus Capital                   
                                                                              
    "Listing Rules" Rules Governing the Listing of Securities on the          
    Stock Exchange                                                            
                                                                              
    "Net Asset Value"       the consolidated net asset value of the Group     
    as announced by the Company in accordance with the Listing Rules          
    from time to time                                                         
                                                                              
    "New IM Agreement"      the investment management agreement dated 12      
    May 2005 entered into between the Company and Hua Yu                      
                                                                              
    "Quarter Date"  31st March, 30th June, 30th September and 31st            
    December in each year during the term of the New IM Agreement             
    or if such day is not a Business Day, the immediately following           
    Business Day