DIT Group Limited — Share Issue/Capital Change 2001

Oct 5, 2001

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)

PROPOSED CAPITAL REORGANISATION

AND SHARE CONSOLIDATION

Financial Adviser

The Circular will be despatched on 5th October, 2001 to the Shareholders providing further information regarding the Proposal and contains a notice convening the SGM. Odd lot facility arrangements, arrangement for exchange of share certificates and expected timetable for the Proposal are set out below in detail.

Terms used herein shall have the same meanings as defined in the announcement issued by the Company dated 18th September, 2001 unless the context otherwise requires.

DESPATCH OF CIRCULAR

The Directors announce that copies of the circular in relation to the Proposal (the "Circular") will be despatched to the Shareholders on 5th October, 2001. The Circular contains (i) further information regarding the Proposal, the relevant exchange and trading arrangements including details of odd lot trading facility and free exchange of share certificates; and (ii) a notice to Shareholders to convene the SGM at which the requisite ordinary and special resolutions will be proposed to approve the Capital Reorganisation Proposal and the Share Consolidation Proposal.

ODD LOT FACILITY ARRANGEMENTS

In order to alleviate the difficulties arising from the existence of odd lots of the New Shares when the Proposal becomes effective, the Company has appointed Taiwan Securities (HK) Company Limited to provide the service to match the sale and purchase of odd lots of the New Shares during the period from 9th November, 2001 to 30th November, 2001, both days inclusive. Holders of New Shares in odd lots who wish to take advantage of this facility either to dispose of their odd lots of the New Shares or top up their shareholdings in the Company to board lots of 2,000 New Shares, may directly or through their broker contact Mr. Oliver So at 2230-5517 of Taiwan Securities (HK) Company Limited at Room 4001-4003, 40th Floor, Tower 2, Lippo Centre, 89 Queensway, Central, Hong Kong during such period. Shareholders should note that successful matching of the sale and purchase of odd lots of the New Shares is not guaranteed.

ARRANGEMENT FOR EXCHANGE OF SHARE CERTIFICATES

All the existing share certificates shall remain as valid proof of legal title to the New Shares on the basis of 10 Shares for 1 New Share in the shareholdings of the Company and shall cease to be used for dealing and settlement purposes after the completion of the Proposal. New share certificates will be pink in colour in order to distinguish them from the existing share certificates which are yellow in colour. Shareholders of the Company are urged to exchange their share certificates as soon as possible from 26th October, 2001 so that their shareholding may be accurately represented in terms of New Shares. This may be done free of charge up to and including 7th December, 2001 by delivering the existing share certificates to the office of the Company's branch share registrar and transfer office, Central Registration Hong Kong Limited at Suite 1712-1716, 17th Floor, Hopewell Centre, 183 Queen's Road East, Wanchai, Hong Kong. Thereafter, existing share certificates will be accepted for exchange only on payment of a fee of HK$2.50 (or such higher amount as may from time to time be allowed by the Stock Exchange) for each new share certificates.

EXPECTED TIMETABLE FOR THE PROPOSAL

2001

Latest time for shareholders to lodge forms of

proxy for the SGM 10:00 a.m. on Monday, 22nd October

SGM 10:00 a.m. on Wednesday, 24th October

Effective date and time for the Proposal 4:00 p.m. on Wednesday, 24th October

Existing counter for trading in existing Shares

in board lots of 2,000 Shares temporarily closes 10:00 a.m. on Friday, 26th October

Temporary counter for trading in New Shares

in board lots of 200 New Shares opens

(in the form of existing share certificates

which are yellow in colour) 10:00 a.m. on Friday, 26th October

Free exchange of existing share certificates for new

share certificates commences Friday, 26th October

Existing counter for trading in New Shares

in board lots of 2,000 New Shares re-opens

(in the form of new share certificates

which are pink in colour) 10:00 a.m. on Friday, 9th November

Parallel trading in New Shares commences

(in the form of new and existing share certificates) Friday, 9th November

First day of operation of odd lot facility 10:00 a.m. on Friday, 9th November

Temporary counter for trading in New Shares

in board lots of 200 New Shares closes

(in the form of existing share certificates

which are yellow in colour) 4:00 p.m. on Friday, 30th November

Parallel trading in New Shares ends

(in the form of new and existing share certificates) Friday, 30th November

Last day of operation of odd lot facility 4:00 p.m. Friday, 30th November

Free exchange of existing share certificates for

new share certificates ends Friday, 7th December

By Order of the Board

South East Group Limited

Martin Liu

Director

Hong Kong, 4th October, 2001

Please also refer to the published version of this announcement in the Hong Kong iMail