09:34 SNP LEEFUNG<00623> - Announcement (8) Latest time for splitting nil-paid Rights Shares 4:00 p.m. on Wednesday, 29 June 2005 Last day of dealings in nil-paid Rights Shares Tuesday, 5 July 2005 Latest time for acceptance of, and payment for, the Rights Shares and application for excess Rights Shares 4:00 p.m. on Friday, 8 July 2005 Latest time for termination of the Underwriting Agreement 4:00 p.m. on Thursday, 14 July 2005 Announcement of results of the Rights Issue on newspapers Friday, 15 July 2005 Refund cheques in respect of wholly or partially unsuccessful applications for excess Rights Shares expected to be posted on or before Monday, 18 July 2005 Certificates for the Rights Shares expected to be despatched on or before Monday, 18 July 2005 Dealings in fully-paid Rights Shares commence on Wednesday, 20 July 2005 Dates or deadlines specified in this announcement are indicative only and may be varied by agreement between the Company and the Underwriter. Any consequential changes to the expected timetable will be published or notified to Shareholders appropriately. WARNING OF THE RISKS OF DEALING IN THE SHARES AND THE NIL-PAID RIGHTS SHARES Existing Shares will be dealt with on an ex-rights basis from Tuesday, 14 June 2005. The Rights Shares will be dealt with in their nil-paid form from Monday, 27 June 2005 to Tuesday, 5 July 2005 (both dates inclusive). If prior to 4:00 p.m. Thursday, 14 July 2005 (or such later date as the Underwriter may agree with the Company), the Underwriter terminates the Underwriting Agreement (see sub-section headed "Termination of the Underwriting Agreement" above) or the conditions of the Rights Issue (see sub-section headed "Conditions of the Rights Issue" above) cannot be fulfilled (or, if appropriate, waived), the Rights Issue will not proceed. Any dealings in the Shares from the date of this announcement up to the date on which all the conditions of the Rights Issue are fulfilled (or, if appropriate, waived), and any dealings in the Rights Shares in their nil-paid form between Monday, 27 June 2005 to Tuesday, 5 July 2005, both days inclusive, are accordingly subject to the risk that the Rights Issue may not become unconditional or may not proceed. Any Shareholders or other persons contemplating any dealings in the Shares or the Rights Shares in their nil-paid forms are recommended to consult their own professional advisers. REASONS FOR THE RIGHTS ISSUE AND USE OF PROCEEDS The Company, through its subsidiaries, is principally engaged in the printing of books, magazines, packaging products and pop-up and touch-and-feel books. The Group had not raised any funds by issue of equity securities of the Company in the 12 months preceding the date of this announcement. The Rights Issue enables the Company to raise funds for the Group's general working capital and repayment of bank loans while the Qualifying Shareholders are given the opportunity to maintain their respective pro rata shareholding interests in the Company by participating in the Rights Issue. The Directors also consider that it is in the best interests of the Group and the Shareholders to enlarge the capital base of the Company and increase the number of Shares held by the public Shareholders through the Rights Issue. The estimated net proceeds of the Rights Issue is approximately HK$118.8 million (assuming none of the outstanding Exercisable Share Options is exercised on or before the Record Date), which is intended to be used in the following manner: 1. as to approximately HK$59.4 million for the Group's general working capital; and 2. as to approximately HK$59.4 million for repayment of existing bank loans. ADJUSTMENT TO THE OPTIONS