09:04     VASO DIGITAL<08220> - 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.                                                     
                                                                              
    VASO DIGITAL INTERNATIONAL HOLDINGS LIMITED                               
    (incorporated in the Cayman Islands with limited                          
    liability)                                                                
    (to be renamed as China Photar Electronics Group                          
    Limited)                                                                  
    (Stock Code: 8220)                                                        
                                                                              
    PLACING OF EXISTING SHARES                                                
                                                                              
    Placing Agent                                                             
                                                                              
    Baron Capital Limited                                                     
                                                                              
    The Board has been informed by Modern China on 27 May                     
    2005 that Modern China as Vendor and Baron Capital                        
    had entered into the Placing Agreement on 27 May 2005,                    
    whereby Modern China has agreed to appoint Baron                          
    Capital as the placing agent and Baron Capital has                        
    agreed to place not more than 78,000,000 Placing                          
    Shares of HK$0.01 each beneficially owned by Modern                       
    China in the issued share capital of the Company at                       
    a price of HK$0.01923 per Share to not less than six                      
    independent institutional, professional and/or                            
    private investors on a best effort basis.                                 
                                                                              
    The Placing Shares represent not more than 15% of the                     
    issued share capital of the Company.                                      
                                                                              
    Immediately upon completion of the Placing, the                           
    shareholding of Modern China will be diluted from                         
    79.75% to not more than approximately 64.75% of the                       
    issued share capital of the Company. Modern China will                    
    continue to be the single largest shareholder of the                      
    Company upon completion of the Placing.                                   
                                                                              
    Further to the joint announcement issued by Modern                        
    China and the Company dated 29 April 2005, the public                     
    float of the Shares in the Company remains at                             
    approximately 19.79% of the total issued share                            
    capital of the Company. As stated in the joint                            
    announcement dated 29 April 2005, Modern China and                        
    the Company will make arrangements for the placing                        
    of Shares to not less than six independent placees                        
    within one month from the date of the joint                               
    announcement, i.e. 29 May 2005. An application will                       
    be made to the Stock Exchange for an extension of time                    
    for restoration of minimum public float up to 30 June                     
    2005.                                                                     
                                                                              
    Trading in the Shares was suspended at the request                        
    of the Company with effect from 9:30 a.m. on 3 May                        
    2005 due to insufficient public float of the Shares.                      
    Application will be made to the Stock Exchange for                        
    resumption of trading upon the restoration of                             
    sufficient public floats.                                                 
                                                                              
    By order of the Board                                                     
    Vaso Digital International Holdings Limited                               
    (to be renamed as China Photar Electronics Group                          
    Limited)                                                                  
    Lee Chun Piu                                                              
    Executive Director                                                        
                                                                              
    Hong Kong, 27 May 2005                                                    
                                                                              
    This announcement, for which the directors of the