09:03     COSMOS MACH<00118> - Announcement                                   

    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.                                                     
                                                                              
    COSMOS MACHINERY ENTERPRISES LIMITED                                      
    (Incorporated in Hong Kong with limited liability)                        
    (Stock Code: 118)                                                         
                                                                              
    ANNOUNCEMENT                                                              
    ADOPTION OF THE SHARE OPTION SCHEME                                       
                                                                              
    The resolution to approve, amongst other things, the                      
    adoption of the Share Option Scheme of the Company,                       
    was duly passed at the Company's annual general                           
    meeting held on 30th May, 2005.                                           
                                                                              
    Reference is made to the Company's circular dated 29th                    
    April, 2005 (the "Circular'') regarding, amongst                          
    other things, the adoption of the Share Option Scheme.                    
    Unless otherwise defined, terms used herein shall                         
    have the meaning as in the Circular.                                      
                                                                              
    The Directors are pleased to announce that at the AGM                     
    held on 30th May, 2005, the resolution for approving                      
    the adoption of the Share Option Scheme was duly                          
    passed by the Shareholders.                                               
                                                                              
    The Share Option Scheme will come into effect upon                        
    the Listing Committee of the Stock Exchange granting                      
    the listing of, and permission to deal in, 70,622,885                     
    Shares, being 10% of the total issued share capital                       
    of the Company as at the date of the AGM, which may                       
    be issued and allotted pursuant to the exercise of                        
    the Options granted under the Share Option Scheme.                        
                                                                              
    By order of the Board                                                     
    TANG To                                                                   
    Chairman                                                                  
                                                                              
    Hong Kong, 30th May, 2005                                                 
                                                                              
    As at the date of this announcement, the board of                         
    directors of the Company comprises Mr. Tang To                            
    (Chairman), Mr. Zhao Zhuoying, Mr. Wong Yiu Ming, Mr.                     
    Yan Wing Fai Richard and Mr. Li Tin Loi as executive                      
    directors, Mr. Tang Kwan (Honorary Chairman), Mr. He                      
    Zhiqi (Vice Chairman) and Mr. Kan Wai Wah as                              
    non-executive directors, and Mr. Liang Shangli, Mr.                       
    Yip Jeffery and Miss Yeung Shuk Fan as independent                        
    non-executive directors.