10:04     SOLARTECH INT'L<01166> - Announcement (1)                           

    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 howsoever arising from or in                      
    reliance upon the whole or any part of the contents                       
    of this announcement.                                                     
                                                                              
    SOLARTECH INTERNATIONAL HOLDINGS LIMITED                                  
    *                                                                         
    (incorporated in Bermuda with limited liability)                          
    (Stock Code : 1166)                                                       
                                                                              
    PLACING OF EXISTING SHARES AND                                            
    SUBSCRIPTION OF NEW SHARES                                                
    UNDER GENERAL MANDATE                                                     
                                                                              
    PLACING AGENT                                                             
                                                                              
    KINGSTON SECURITIES LIMITED                                               
                                                                              
    On 24 May 2005, the Vendor entered into the Placing                       
    Agreement and the Subscription Agreement with the                         
    Placing Agent and the Company respectively. Pursuant                      
    to the Placing Agreement, the Vendor has agreed to                        
    place, through the Placing Agent, 65,390,000 Placing                      
    Shares, on a fully underwritten basis, to not fewer                       
    than six independent institutional, corporate or                          
    individual investors at a price of HK$0.28 per Share.                     
    Pursuant to the Subscription Agreement, the Vendor                        
    conditionally agreed to subscribe for 65,390,000                          
    Subscription Shares at a price of HK$0.28 per Share.                      
                                                                              
    The Placing Shares and the Subscription Shares                            
    represent (i) about 20% of the existing issued share                      
    capital of the Company comprising 326,974,362 Shares                      
    as at the date of this announcement and (ii) about                        
    16.67% of the issued share capital of the Company as                      
    enlarged by the Subscription comprising 392,364,362                       
    Shares.                                                                   
                                                                              
    The Placing Price and the Subscription Price of                           
    HK$0.28 represents a discount of 19.77% to the                            
    benchmarked price of the Shares, which is the higher                      
    of (i) the closing price of HK$0.28 on 24 May 2005,                       
    being the date of the Placing Agreement and the                           
    Subscription Agreement; and (ii) the average closing                      
    price of HK$0.349 in the last 5 trading days prior                        
    to the date of the Placing Agreement.                                     
                                                                              
    The Subscription is conditional upon the Stock                            
    Exchange granting the listing of, and the permission                      
    to deal in, the Subscription Shares.                                      
                                                                              
    The gross proceeds from the Subscription will be                          
    approximately HK$18.31 million. The net proceeds from                     
    the Subscription of about HK$17.80 million will be                        
    used for purchasing raw materials (including copper                       
    wires and PVC resin) for production of cable and wires.                   
    The net proceeds raised per Share upon the completion                     
    of the Placing and the Subscription will be about                         
    HK$0.272 per Share.                                                       
                                                                              
    THE PLACING AGREEMENT                                                     
    Date                                                                      
    24 May 2005                                                               
                                                                              
    Parties involved                                                          
    The Placing Agent and the Vendor                                          
                                                                              
    Placing Agent                                                             
    Kingston Securities Limited is the Placing Agent and                      
    will receive a placing commission of 2.5% on