09:47     SKY HAWK COMP<01129> - Announcement & Resumption (2)                

    the closing price of Shares of approximately HK$0.0938 per Share over     
    the last 5 consecutive trading days up to and including 23 May 2005;      
    and (iii) a premium of approximately 24.38% to the average of the         
    closing price of Shares of approximately HK$0.0804 per Share over the     
    last 10 consecutive trading days up to and including 23 May 2005.         
                                                                              
    After taking into consideration of the costs and expenses in relation     
    to the Placing and Subscription, the net price of each Placing Share is   
    approximately HK$0.096 per Share, representing (i) a discount of          
    approximately 5.88% to the closing price of HK$0.102 per Share as         
    quoted on the Stock Exchange on 23 May 2005; (ii) a premium of            
    approximately 2.35% to the average of the closing price of Shares of      
    approximately HK$0.0938 per Share over the last 5 consecutive trading     
    days up to and including 23 May 2005; and (iii) a premium of              
    approximately 19.4% to the average of the closing price of Shares of      
    approximately HK$0.0804 per Share over the last 10 consecutive trading    
    days up to and including 23 May 2005.                                     
                                                                              
    The Placing Price is determined after arm's length negotiation between    
    the Company, the Vendor and the Placing Agent and taking into account     
    the general market conditions. The Directors consider that the Placing    
    Price (including the discount to the closing price of the Shares as       
    shown above on 23 May 2005, being the last trading day prior to the       
    suspension of trading in the Shares on the Stock Exchange pending the     
    release of this announcement) is fair and reasonable and to the best      
    interests of the Company and its shareholders as a whole.                 
                                                                              
    Rights:                                                                   
                                                                              
    The Placing Shares will be sold free from any third party rights. The     
    Placees will receive all dividends and distributions declared, made or    
    paid on or after 24 May 2005.                                             
                                                                              
    Placees:                                                                  
                                                                              
    Not less than six independent Placees                                     
                                                                              
    Placing Agent:                                                            
                                                                              
    Emperor Securities Limited                                                
                                                                              
    Independence of the Placees and the Placing Agent:                        
                                                                              
    The Placing Agent and the Placees, together with their ultimate           
    beneficial owner(s) (if any), are and will be independent of and not      
    connected with the Company, the directors, chief executive or             
    substantial shareholders (as defined in the Listing Rules) of the         
    Company or its subsidiaries or any of their respective associates.        
                                                                              
    Conditions of the Placing:                                                
                                                                              
    The Placing is unconditional.                                             
                                                                              
    Completion of the Placing:                                                
                                                                              
    Completion of the Placing is expected to take place on or before 27 May   
    2005.                                                                     
                                                                              
    THE SUBSCRIPTION                                                          
                                                                              
    Date of the Subscription Agreement:                                       
                                                                              
    24 May 2005                                                               
                                                                              
    Subscriber:                                                               
                                                                              
    The Vendor                                                                
                                                                              
    Number of Subscription Shares:                                            
                                                                              
    99,000,000 new Shares, which are equivalent to the number of the          
    Placing Shares. Such new Shares represent 20% of the existing share       
    capital of the Company and 16.67% of the issued share capital of the      
    Company as enlarged by the Subscription.                                  
                                                                              
    Subscription Price:                                                       
                                                                              
    HK$0.10 per Share, which is equivalent to the Placing Price.              
                                                                              
    Ranking:                                                                  
                                                                              
    The Subscription Shares, when issued and fully paid, will rank equally    
    in all respects among themselves and with the Shares in issue as at the   
    date of the allotment and issue of the Subscription Shares.