Esprit Holdings Limited — Capital/Financing Update 2000

Apr 3, 2000

Listed Company Information

AKAI HOLD<0448>, TOYO HOLD<0094> & GRANDE HOLD<0186> - Joint 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. AKAI HOLDINGS LIMITED (incorporated in Bermuda with limited liability) TOYO HOLDINGS LIMITED (incorporated in Bermuda with limited liability) THE GRANDE HOLDINGS LIMITED (incorporated in Bermuda with limited liability) Proposed open offer of convertible bonds to existing shareholders of Akai Holdings Limited On the basis of convertible bonds in the principal amount of HK$0.20 For every share held by eligible shareholders of Akai Holdings Limited and Major transaction for Toyo Holdings Limited and Discloseable transaction for The Grande Holdings Limited The respective boards of directors of Akai, Grande and Toyo jointly announce that the Underwriting Agreement has lapsed since 12:00 a.m. on 1st April, 2000. Accordingly, the respective circulars of Akai, Grande and Toyo in relation to the Underwriting Agreement will not be despatched. Reference is made to the joint announcement of Akai Holdings Limited ("Akai"), The Grande Holdings Limited ("Grande") and Toyo Holdings Limited ("Toyo") dated 2nd February, 2000. The respective boards of directors of Akai, Grande and Toyo hereby announce that the underwriting agreement dated 2nd February, 2000 entered into between Akai and Toyo for the underwriting by Toyo of Akai's open offer of convertible bonds (the "Underwriting Agreement") has lapsed since 12:00 a.m. on 1st April, 2000. Accordingly, the special general meeting of Akai (the "SGM") referred to in the joint announcement dated 2nd February, 2000 in relation to the Underwriting Agreement is no longer necessary to be convened. Hence, the corresponding notice of the SGM and the respective circulars of Akai, Grande and Toyo to be issued pursuant to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited are no longer necessary. The advance made by Toyo to Akai is independent of the Underwriting Agreement, save and except such advance would have been utilized to set off the amount to be paid to Akai by Toyo pursuant to the Underwriting Agreement had the Underwriting Agreement been completed. There will be no material adverse impact on Toyo or Akai as a result of the lapse of the Underwriting Agreement. Currently, no definite decision has been made by the directors of Grande and Toyo in relation to the entering into of a new underwriting agreement between Toyo and Akai for the underwriting by Toyo of Akai's open offer of convertible bonds, as Akai is still under negotiations with its creditors for the withdrawal of the winding-up petitions (the "Winding-up Petitions") filed against Akai and Kong Wah Holdings Limited, an indirect non-wholly owned subsidiary of Akai. The hearing of the Winding-up Petitions have been adjourned to 2nd May, 2000. Shareholders and investors of Akai, Grande and Toyo are advised to exercise caution when dealing in the securities in the respective Companies. By Order of the Board By Order of the Board By Order of the Board Akai Holdings Limited Toyo Holdings Limited The Grande Holdings Limited James Henry Ting Christopher W. Ho Christopher W. Ho Chairman and Chief Executive Executive Chairman President and Chief Executive Hong Kong, 1st April, 2000