Daohe Global Group Limited — Major Shareholding Notification 2003

May 20, 2003

The Stock Exchange of Hong Kong Limited (‘‘Stock Exchange’’) 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.

LINMARK GROUP LIMITED

(Incorporated in Bermuda with limited liability)

ANNOUNCEMENT

The board of directors of Linmark Group Limited has noted the recent increases in the trading volume of the shares of the Company and wishes to state that, save as the placing of existing shares of the Company by its controlling shareholder disclosed below, it is not aware of any reasons for such movements.

This announcement is made at the request of the Stock Exchange.

The board of directors (‘‘Board’’) of Linmark Group Limited (‘‘Linmark’’ or the ‘‘Company’’) has noted the recent increases in the trading volume of the shares of the Company and wishes to state that, save as disclosed below, it is not aware of any reasons for such movements.

As informed by Roly International Holdings Ltd. (‘‘Roly’’), a placing agreement (‘‘Placing Agreement’’) was concluded on 19 May 2003 pursuant to which RGS Holdings Limited (‘‘RGS’’), a wholly-owned subsidiary of Roly, through Cazenove Asia Limited, a placing agent in Hong Kong, would sell 35,000,000 existing shares of par value US$0.02 each (‘‘Linmark Sale Shares’’) in the capital of Linmark, representing 5.41% of the existing issued share capital of Linmark, to independent investors at a price of HK$2.08 for each Linmark Sale Share (‘‘Transaction’’). The Transaction is expected to be completed on 22 May 2003.

The sale price of HK$2.08 per Linmark Sale Share represents a discount of approximately 4.37% to the closing market price of the shares of par value US$0.02 each of Linmark (each, a ‘‘Linmark Share’’) traded on the Stock Exchange on 19 May 2003.

Prior to the Transaction, Roly had, through RGS, an interest in 72.29% of the issued share capital of Linmark, comprising 468,000,000 Linmark Shares. Following the completion of the Transaction, Roly’s interest in Linmark will be reduced to 66.88%, comprising 433,000,000 Linmark Shares.

Save for the above, the Board also confirms that there are no negotiations or agreements relating to intended acquisitions or realisations which are discloseable under paragraph 3 of the Listing Agreement made between Linmark and the Stock Exchange, 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.

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The directors of the Company individually and jointly accept responsibility for the accuracy of this statement.

By Order of the Board KHOO Kim Cheng Director

Hong Kong, 20 May 2003

• For identification purpose only

Please also refer to the published version of this announcement in the (The Standard)

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