Genesis Scale Holdings Limited — M&A Activity 2000

Sep 29, 2000

Listed Company Information

CLIMAX INT'L<0439> - 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. CLIMAX INTERNATIONAL COMPANY LIMITED (Incorporated in Bermuda with limited liability) Centurion Corporate Finance Limited Financial adviser to Climax International Company Limited ANNOUNCEMENT LETTER OF INTENT The Company announces that the signing of the Investment Agreement has been further delayed and will now be extended to 7 October 2000. As the Proposed Investment is subject to a number of conditions precedent and in view of the fact that the letter of intent is not legally binding and the Investment Agreement has not been entered into, the Proposed Investment may or may not proceed. Shareholders and the investing public are, therefore, advised to exercise caution when dealing in the Shares. Reference is made to the announcements dated 25 July 2000 and 18 September 2000 respectively in relation to the non legally binding letter of intent dated 19 July 2000 between Climax International Company Limited (the "Company") and First Century Holdings Limited (the "Investor"). Unless otherwise defined, terms used in this announcement shall have the same meanings as those used in the announcement dated 25 July 2000. The letter of intent provided that the Investment Agreement, which would set out the terms and conditions of the Proposed Investment, would be entered into on or before 18 September 2000. This deadline was extended to 28 September 2000 as announced on 18 September 2000. As the Company and the Investor still require more time to finalise the terms of the Investment Agreement and there are a number of drafting matters which require further clarifications, the parties have agreed that the deadline for the entering into of the Investment Agreement will now be extended to 7 October 2000. Due diligence review, which was extended to 30 August 2000, has not been extended any further by the Company. Following due diligence review and as requested by the Investor, the Company has provided clarifications on a number of matters and the Investor is now considering those clarifications. Save as set out in this announcement and the announcement dated 18 September 2000, no other material changes have been made to the terms of the letter of intent. As the Proposed Investment is subject to a number of conditions precedent and in view of the fact that the letter of intent is not legally binding and the Investment Agreement has not been entered into, the Proposed Investment may or may not proceed. Shareholders and the investing public are, therefore, advised to exercise caution when dealing in the Shares. By Order of the Board Climax International Company Limited Fung Kwong Yan Chairman Hong Kong SAR, 28 September 2000 The directors of Climax International Company Limited jointly and severally accept full responsibility for the accuracy of the information contained in this announcement and confirm, having made all reasonable inquiries, that to the best of their knowledge and belief, opinions expressed in this announcement have been arrived at after due and careful consideration and there are no other facts not contained in this announcement, the omission of which would make any statement in this announcement misleading.