09:48     SKY HAWK COMP<01129> - Announcement & Resumption (3)                

    Conditions and completion of the Subscription:                            
                                                                              
    The Subscription by the Vendor of the Subscription Shares is              
    conditional upon:                                                         
                                                                              
    (i)  the Placing Agreement not being terminated and completion of the     
    Placing in accordance with the terms of the Placing Agreement; and        
                                                                              
    (ii)  the Listing Committee granting or agreeing to grant the listing     
    of, and permission to deal in, the Subscription Shares.                   
                                                                              
    The above conditions must be satisfied within 14 days from the date of    
    the Subscription Agreement, or such other date as the parties may         
    agree. If any conditions above stated are not being satisfied, all        
    rights, obligations and liabilities of the parties in relation to the     
    Subscription will cease and determine.                                    
                                                                              
    Completion of the Subscription is expected to take place on or before 8   
    June 2005.                                                                
                                                                              
    Application for listing:                                                  
                                                                              
    Application will be made to the Listing Committee for the grant of the    
    listing of, and permission to deal in, the Subscription Shares.           
                                                                              
    Mandate to issue Subscription Shares                                      
                                                                              
    The Subscription Shares will be allotted and issued under the general     
    mandate granted to the Directors pursuant to a resolution passed at the   
    annual general meeting of the Company held on 24 June 2004. The Company   
    has not exercised such general mandate to allot and issue any Shares      
    prior to the Placing.                                                     
                                                                              
    EFFECT OF THE PLACING AND THE SUBSCRIPTION                                
                                                                              
    The effect on the shareholding structure of the Company immediately       
    after completion of the Placing and the Subscription is as follows:       
                                                                              
      Existing (before  Immediately after                                     
      completion  completion of the Placing   Immediately after               
      of the Placing and  but before completion of   completion of the        
    Placing   the Subscription)  the Subscription  and the Subscription       
      Number of    Number of     Number of                                    
      Shares  %  Shares  %  Shares  %                                         
                                                                              
    Vendor (Note 1)  243,403,000  49.17%  144,403,000  29.17%  243,403,000    
    40.98%Ko Su Mei (Note 2)  243,403,000  49.17%  144,403,000  29.17%        
    243,403,000  40.98%Wang Chia Chun   27,700,000  5.60%  27,700,000         
    5.60%  27,700,000  4.66%Ko Kin Hang  26,764,000  5.41%  26,764,000        
    5.41%  26,764,000  4.50%                                                  
                                                                              
    Public                                                                    
      - Placees  -  0%  99,000,000  20%  99,000,000  16.67%                   
      - Others  197,133,000  39.82%  197,133,000  39.82%  197,133,000         
    33.19%                                                                    
                                                                              
    Total  495,000,000  100%  495,000,000  100%  594,000,000        100%      
                                                                              
    Note 1:  The Vendor is the spouse of Ms. Ko Su Mei, therefore, he is      
    taken to be interested in 126,252,000 Shares beneficially owned by Ms.    
    Ko Su Mei by virtue of the Securities and Futures Ordinance.              
                                                                              
    Note 2:  Ms. Ko Su Mei is the spouse of the Vendor, therefore, she is     
    taken to be interested in 117,151,000 Shares beneficially owned by the    
    Vendor by virtue of the Securities and Futures Ordinance.                 
                                                                              
    EXPENSES                                                                  
                                                                              
    The Company will bear all the costs and expenses of approximately         
    HK$348,000 incurred in relation to the Placing and the Subscription       
    (including a commission of 3% of the aggregate Placing Price payable to   
    the Placing Agent) and will reimburse the Vendor for all costs and        
    expenses incurred therein.                                                
                                                                              
    Taking into account of the relevant costs and expenses, the net price     
    to the Company of each Placing Share is approximately HK$0.096 per        
    Share.                                                                    
                                                                              
    REASONS FOR THE PLACING AND THE SUBSCRIPTION AND USE OF PROCEEDS          
                                                                              
    The Group is mainly engaged in high-end aluminum chassis and production   
    of certain middle-to-low end products such as iron computer chassis and   
    power supply.