08:52     VC HOLDINGS<08101> - 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.                                                     
                                                                              
    VALUE CONVERGENCE HOLDINGS LIMITED                                        
    (Incorporated in Hong Kong with limited liability)                        
    website: http://www.valueconvergence.com                                  
    (Stock Code: 8101)                                                        
                                                                              
    ANNOUNCEMENT                                                              
    HIGH CONCENTRATION OF SHAREHOLDINGS                                       
                                                                              
    This announcement is made at the request of the Stock                     
    Exchange.                                                                 
                                                                              
    On 10th May, 2005, the Board of the Company was informed                  
    by the Stock Exchange that, on the basis of the                           
    information provided to the Stock Exchange by the                         
    Securities and Futures Commission, as at 14th April,                      
    2005, nine shareholders of the Company held an                            
    aggregate of 37,115,553 Shares, representing                              
    approximately 15.58% of the issued share capital of                       
    the Company on 14th April, 2005. The Board has no                         
    further knowledge of the identities of the nine                           
    shareholders referred to above other than the                             
    information provided to it by the Stock Exchange.                         
                                                                              
    The aggregate shareholdings of Melco Financial Group                      
    Limited, Dr. Stanley Ho (the Company's Chairman), Mr.                     
    Lawrence Ho (the Company's Vice Chairman and an                           
    Executive Director) and Dr. Lee Jun Sing (an Executive                    
    Director of the Company) as at 14th April, 2005                           
    represented approximately 75% of the issued share                         
    capital of the Company in aggregate.                                      
                                                                              
    According to the information provided to the Board of                     
    the Company by the Stock Exchange on 10th May 2005,                       
    the remaining public shareholders hold 8.6% of the                        
    issued share capital of the Company on 14th April, 2005.                  
    The Board has taken steps to verify the information                       
    provided to it by the Stock Exchange but is unable to                     
    do so without further details in respect of the nine                      
    shareholders mentioned in the Stock Exchange's letter                     
    of 10th May 2005.                                                         
                                                                              
    Given the Stock Exchange's indication that there was                      
    a large proportion of the issued Shares in the hands                      
    of a relatively small number of shareholders, the                         
    share price might be volatile and subject to large                        
    increases and decreases as a result of the trading of                     
    even a relatively small number of Shares. In view of                      
    the high concentration of Shares in the hands of a small                  
    number of shareholders, shareholders and potential                        
    investors of the Company are advised to exercise                          
    caution when dealing in the Shares.                                       
                                                                              
    By Order of the Board                                                     
    Value Convergence Holdings Limited                                        
    Samuel Tsang                                                              
    Company Secretary                                                         
                                                                              
    As at the date of this announcement, the executive                        
    directors of the Company are Dr. Stanley Ho, Mr.                          
    Lawrence Ho and Dr. Lee Jun Sing and the independent                      
    non-executive directors are Attorney Patajo-Kapunan,                      
    Lorna, Mr. Sham Sui Leung, Daniel and Dr. Tyen Kanhee,                    
    Anthony.                                                                  
                                                                              
    Hong Kong, 30th May, 2005