09:09     NCM HOLDINGS<08085> - Announcement & Resumption (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.                                                        
                                                                              
    New Chinese Medicine Holdings Limited                                     
    (Incorporated in Cayman Islands with limited liability)                   
    (Stock Code: 8085)                                                        
                                                                              
    Excel Point Holdings Limited                                              
    (Incorporated in the British Virgin Islands with limited                  
    liability)                                                                
                                                                              
    Financial adviser to Excel Point Holdings Limited                         
    KINGSTON CORPORATE FINANCE LIMITED                                        
                                                                              
    JOINT ANNOUNCEMENT                                                        
                                                                              
    SHARE CONSOLIDATION;                                                      
    CHANGE IN BOARD LOT SIZE;                                                 
    SUBSCRIPTION OF NEW SHARES                                                
    BY THE SUBSCRIBER                                                         
    AND                                                                       
    APPLICATION FOR THE GRANTING OF                                           
    THE WHITEWASH WAIVER                                                      
                                                                              
    PROPOSED SHARE CONSOLIDATION                                              
    The Company proposes to effect the Share Consolidation                    
    pursuant to which every four Shares will be consolidated                  
    into one New Share.                                                       
                                                                              
    As at the date of this announcement, the authorised                       
    share capital of the Company is HK$ 200,000,000                           
    comprising 20,000,000,000 Shares, of which 469,000,000                    
    Shares have been issued and fully paid. Immediately                       
    following the Share Consolidation, the authorised share                   
    capital of the Company will remain to be HK$200,000,000                   
    comprising 5,000,000,000 New Shares, of which                             
    approximately 117,250,000 New Shares will be in issue.                    
                                                                              
    Details of the odd lots arrangement, the free exchange                    
    of certificates of the New Shares and, the timetable and                  
    the details of the trading arrangements will be                           
    announced upon despatch of the document to the                            
    Shareholders containing details of the Share                              
    Consolidation, the Subscription and the Whitewash Waiver.                 
                                                                              
    CHANGE IN BOARD LOT SIZE                                                  
    The Company also announces the change in the board lot                    
    size for trading in shares from 4,000 Shares to 20,000                    
    New Shares upon completion of the Share Consolidation.                    
                                                                              
    SUBSCRIPTION OF NEW SHARES                                                
    On 27 May 2005, the Company entered into a conditional                    
    Subscription Agreement with the Subscriber and the                        
    Subscriber's Guarantor, pursuant to which the Subscriber                  
    will subscribe for 450,000,000 New Shares at an issue                     
    price of HK$0.04 each upon completion of the Share                        
    Consolidation. The issue price of each Subscription                       
    Share of HK$0.04 (equivalent to approximately HK$0.01                     
    per Share prior to the Share Consolidation) represents a                  
    discount of approximately 66.67% to the closing price of                  
    HK$0.03 per Share as quoted on the Stock Exchange on 26                   
    April 2005, being the last trading day in the Shares on                   
    the Stock Exchange prior to the publication of this                       
    announcement.                                                             
                                                                              
    Upon Completion, the Subscriber and its concert parties                   
    will be interested in 450,000,000 New Shares,                             
    representing approximately 383.80% of the existing                        
    issued share capital of the Company and approximately                     
    79.33% of the issued share capital of the Company as                      
    enlarged by the allotment and issue of the Subscription                   
    Shares.