10:05     SOLARTECH INT'L<01166> - Announcement (5)                           

            intended use of                                                   
    54,000,000 new          on 17 June                      proceeds for      
    Shares at HK$0.27               2004                    working capital   
    per new Share                                   purpose                   
                                                                              
    As at the date of this announcement, the Company has                      
    four executive Directors and three independent                            
    non-executive Directors. The executive Directors are                      
    Mr. Chau Lai Him, Mr. Zhou Jin Hua, Mr. Lau Man Tak                       
    and Mr. Liu Jin Rong. The independent non-executive                       
    Directors are Mr. Chung Kam Kwong, Mr. Lo Kao Cheng                       
    and Mr. Lo Wai Ming.                                                      
                                                                              
    TERMS AND DEFINITION                                                      
    "Board" the board of Directors                                            
                                                                              
    "Company"       Solartech International Holdings Limited,                 
    a company incorporated in Bermuda with limited                            
    liability and the shares of which are listed on the                       
    Stock Exchange                                                            
                                                                              
    "Director(s)"   director(s) including independent                         
    non-executive director(s) of the Company                                  
                                                                              
    "Group" the Company and its subsidiaries                                  
                                                                              
    "Hong Kong"     Hong Kong Special Administrative Region                   
    of the People's Republic of China                                         
                                                                              
    "Listing Rules" the Rules Governing the Listing of                        
    Securities on the Stock Exchange                                          
                                                                              
    "Placing"       the placing of 65,390,000 Shares which are                
    owned by the Vendor pursuant to the Placing Agreement                     
                                                                              
    "Placing Agent" Kingston Securities Limited, a                            
    licensed corporation to carry on business in types                        
    1 regulated activity (dealing in securities) under                        
    the Securities and Futures Ordinance (Chapter 571 of                      
    the Laws of Hong Kong)                                                    
                                                                              
    "Placing Agreement"     an unconditional placing                          
    agreement entered into between the Vendor and the                         
    Placing Agent dated 24 May 2005 in relation to the                        
    Placing                                                                   
                                                                              
    "Placing Price" HK$0.28 per Share                                         
                                                                              
    "Placing Shares"        a total of 65,390,000 Shares which                
    are beneficially owned by the Vendor, to be placed                        
    pursuant to the Placing Agreement                                         
                                                                              
    "Shares"        ordinary shares of HK$0.01 in the share                   
    capital of the Company                                                    
                                                                              
    "Shareholder(s)"        holder(s) of the Shares                           
                                                                              
    "Stock Exchange"        The Stock Exchange of Hong Kong                   
    Limited                                                                   
                                                                              
    "Subscription"  the subscription for the                                  
    Subscription Shares pursuant to the Subscription                          
    Agreement                                                                 
                                                                              
    "Subscription Agreement"        a conditional subscription                
    agreement entered into between the Company and the                        
    Vendor dated 24 May 2005 in relation to the                               
    Subscription                                                              
                                                                              
    "Subscription Price"    HK$0.28 per Share                                 
                                                                              
    "Subscription Shares"   a total of 65,390,000 new                         
    Shares which are to be subscribed by the Vendor                           
    pursuant to the Subscription Agreement