AV Concept Holdings Limited — M&A Activity 2000

Feb 15, 2000

Listed Company Information

AV CONCEPT HOLD<0595> - 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. AV CONCEPT HOLDINGS LIMITED (Incorporated in the Cayman Islands with limited liability) ANNOUNCEMENT The Company is currently in negotiation with certain independent third parties in relation to a possible investment in a design house in Korea for the design of new electronic products; and a potential investment in an e-commerce corporation in the PRC ("Proposed Transactions") which will provide the Company with an opportunity in the development of its internet and e-commerce business. However, the terms of the Proposed Transactions are still subject to negotiation and no binding contract has been entered. This announcement is made at the request of The Stock Exchange of Hong Kong Limited. The Board of Directors ("Board") of AV Concept Holdings Limited ("Company") has noted the recent increases in the share price and the trading volume of the shares of the Company and wish to state that, except possibly for the proposed transactions as mentioned below, the Directors are not currently aware of any reasons for such increases. Discussions are being held since January 2000 between the Company and two independent third parties in relation to a possible investment in a design house in Korea for the design of new electronic products; and a potential investment in an e-commerce corporation in the PRC ("Proposed Transactions") which will provide the Company with an opportunity in the development of its internet and e-commerce business. However, the terms of the Proposed Transactions are still subject to negotiation. The Directors wish to state that no terms and conditions have been reached and no binding contract has been entered. The Proposed Transactions, if entered into between the Company and the independent third parties, may constitute notifiable transactions under the Listing Rules. In the event that an agreement or agreements had been reached relating to the Proposed Transactions, a further announcement will be made to comply with the relevant Listing Rules requirements. Save as disclosed aforesaid, the Board confirms that there are no negotiations or agreements relating to intended acquisitions or realisations which are discloseable under paragraph 3 of the Listing Agreement, neither is the Board aware of any matter discloseable under the general obligation imposed by paragraph 2 of the Listing Agreement, which is or may be of a price-sensitive nature. The Board wishes to emphasis that the Proposed Transactions may or may not proceed, shareholders of the Company and potential investors are reminded to exercise caution when dealing in the shares of the Company. As at the date of this announcement, the Company was not informed by any of its Directors that they had dealt in any of the securities of the Company. Made by the order of the Board of the Company, the directors of which individually and jointly accept responsibility for the accuracy of this announcement. By Order of the Board Ha Shu Tong Director Hong Kong, 14 February 2000