DIT Group Limited — Capital/Financing Update 2003

May 6, 2003

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.

SOUTH EAST GROUP LIMITED

(Incorporated in Bermuda with limited liability)

DISCLOSEABLE TRANSACTION

The Company through its wholly owned subsidiary on the part of Vendor, entered into an agreement with an independent third party not connected with and independent of any of the directors, chief executive or substantial shareholders of the Company or any of its subsidiaries or any of their respective associates (as defined under the Listing Rules) on the part of Purchaser on 5th May 2003 for realization of the office premises in Hong Kong.

THE PROVISIONAL SALE AND PURCHASE AGREEMENT

Date of the Agreement: 5th May 2003

Parties

Vendor: Formula Ten Limited (the “Vendor”), a wholly owned subsidiary of South East Group Limited (the “Company”).

• Purchaser: an independent third party not connected with and independent of any of the directors, chief executive or substantial shareholders of the Company or any of its subsidiaries or any of their respective associates (as defined under the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “Listing Rules”).

Realization of Asset

The office premises to be sold is located at Room 1103A, Admiralty Centre, Tower 1, 18 Harcourt Road, Hong Kong (the “Property”) of saleable area of approximately 308.73 sq. meters held by the Vendor. Value of the Property booked in the Company’s latest published consolidated financial statements for the year ended 31st March 2002 was HK$33,336,000. The Property is currently used as the Company’s principal place of business in Hong Kong and as the registered office of its subsidiaries.

Consideration

The consideration for the sale of the Property is HK$11,280,000 in cash (the “Consideration”). The Consideration was agreed after arm’s length negotiation based on normal commercial terms. Loss of approximately HK$22 million arising from the Realization will be recognized in the Company’s income statement.

Payment Terms

• (1) an initial deposit of HK$300,000 has been paid to the Vendor upon signing of the provisional sale and purchase agreement dated 5th May 2003;

• (2) a further deposit of HK$828,000 will be paid to the Vendor’s solicitors as stakeholder upon signing of a formal sale and purchase agreement on or before 16th May 2003; and

• (3) the remaining balance of HK$10,152,000 in cash will be paid to the Vendor upon completion of the realization of the Property (the “Realization”) on or before 30th June 2003.

The Purchaser shall be entitled to cancel the provisional sale and purchase agreement dated 5th May 2003 if the Purchaser is unable to obtain satisfactory finance arrangement with a bank in Hong Kong by 24th May 2003 whereby all deposits paid shall be returned to the Purchaser.

Date of Completion

On or before 30th June 2003

Reasons for the realization

It has become the Group’s strategy to focus it business development on the Mainland China markets. It is planned that the principal office of the Company be relocated to a smaller place in the vicinity yet to be decided in order to save costs. The Realization will not only help the Group to reduce finance costs but also will provide additional funds for working capital purpose.

Use of proceeds

The net proceeds of the Realization are intended to be used for repayment of a mortgage loan with an outstanding amount of approximately HK$6.2 million to the lending bank and the balance of approximately HK$5 million for general working capital.

– 1 –

General

The Company is an investment holding company with its subsidiaries are principally engaged in property development and investment, manufacturing and trading of magnetic media products, manufacturing and trading of grape wine and other strategic investment projects.

The Realization constitutes a discloseable transaction for the Company under the Listing Rules. A circular containing information on the Realization will be dispatched to the shareholders of the Company as soon as possible.

By Order of the Board South East Group Limited Kwan Kei Chor, Samuel Director

Hong Kong, 6th May 2003

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

– 2 –