CWT International Limited — M&A Activity 2000

Feb 14, 2000

Listed Company Information

WAH TAK FUNG<0297> - Exceptional Price Movement The Stock Exchange has received a message from Wah Tak Fung Holdings Limited which is reproduced as follows:- " WAK TAK FUNG HOLDINGS LIMITED (Incorporated in Bermuda with limited liability) Announcement The Board of Directors ("Board") of Wak Tak Fung Holdings Limited ("the Company") refers to an article appearing in the newspapers on 14 February 2000 in relation to a possible investment by the Company in a business involved in the operation of internet security system in the People's Republic of China ("Proposed Acquisition"). The Board announces that the Company is in preliminary discussion with an independent third paty not connected with the directors, chief executive or substantial shareholder of the Company or any of its subsidiaries or their respective associates (as defined under the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited) in relation to the Proposed Acquisition. This announcement is made at the request of The Stock Exchange of Hong Kong Limited. The directors of the Company ("Directors") have noted the recent increase in the price of the shares of the Company and wish to state that, except as mentioned below, the Directors are not aware of any reason for such increases. The Board announces that the Company is in preliminary discussion with an independent third party not connected with the directors, chief executive or substantial shareholder of the Company or any of its subsidiaries or their respective associates (as defined under the Rules Governing the Lisiting of Securities on The Stock Exchange of Hong Kong Limited) for a possible investment in a company involved in the operation of internet security system in the People's Republic of China. Preliminary discussions have taken place which may or may not result in the Proposed Acquisition being completed. At this stage, no agreement has been reached in respect of the Proposed Acquisition. The Board also refers to an announcement of the Company dated 2 February 2000 in relation to a placing of 50,000,000 new shares of HK$0.10 each in the Company ("the Placing") and confirms that, at this stage, the net proceeds from the Placing would be used as general working capital for the Company. As the Company's discussion in respect of the Proposed Acquisition is still at a preliminary stage and no specific terms have been agreed, the Board has not decided to use any part of the proceeds from the Placing as consideration for the Proposed Acquisition. Save as disclosed, the Board confirms that there are no negotiations or agreements relating to intended acquisitions or realisations which are discloseable under paragraph 3 of Listing Agreement, neither is the Board aware of any other matter discloseable under the general obligation imposed by paragraph 2 of the Listing Agreement, which is or may be of a price sensitive nature. In the meantime, shareholders and other persons who are contemplating dealing in the securities of the Company are advised to exercise extreme caution. The Company will make further announcement to inform shareholders of developments in respect of the Proposed Acquisition. Made by the order of the Borad, the Directors of which individually and jointly accept responsibility for the accuracy of this announcement. By order of the Board Chan King Hung Director Hong Kong SAR, 14th February, 2000"