Hephaestus Holdings Limited — M&A Activity 2008

Dec 23, 2008

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 8173)

COMPLETION OF VERY SUBSTANTIAL ACQUISITION

AND

CONNECTED TRANSACTION

The Board is pleased to announce that the completion of the Acquisition Agreement took place on 18 December 2008.

References are made to (i) the circular of Intelli-Media Group (Holdings) Limited (the “Company”) dated 21 November 2008 (the “Circular”) and; (ii) the announcement dated 8 December 2008 of the results of the extraordinary general meeting of the Company held on 8 December 2008 which the Acquisition Agreement, the grant of Specific Mandate and the issue of the Convertible Bonds were approved by the Independent Shareholders. Unless the context otherwise requires, capitalized terms used herein shall have the same meanings as those defined in the Circular.

Completion of Very Substantial Acquisition and Connected Transaction

The Board is pleased to announce that the completion of the Acquisition Agreement took place on 18 December 2008.

By order of the Board

Intelli-Media Group (Holdings) Limited

Kwong Wai Ho, Richard

Executive Director

Hong Kong, 23 December 2008

As at the date of this announcement, the Board comprises three executive Directors, Mr. Chin Wai Keung, Richard, Mr. Kwong Wai Ho, Richard, Mr. Wong Chung Yu Denny, one non-executive Director, Mr. Yin Mark Teh-min, and three independent non-executive Directors, Mr. Lai Kai Jin, Michael, Mr. Ng Yat Cheung, JP, and Mr. Chan Siu Wing, Raymond.

This announcement, for which the Directors collectively and individually accept full responsibility, includes particulars given in compliance with the Rules Governing the Listing of Securities on the Growth Enterprise Market of The Stock Exchange of Hong Kong Limited for the purpose of giving information with regard to the Company. The Directors, having made all reasonable enquiries, confirm that, to the best of their knowledge and belief: (1) the information contained in this announcement is accurate and complete in all material respects and not misleading; (2) there are no other matters the omission of which would make and statement in this announcement misleading; and (3) all opinions expressed in this announcement have been arrived at after due and careful consideration and are founded on bases and assumptions that are fair and reasonable.

This announcement will remain on the page of “Latest Company Announcement” on the GEM website for at least 7 days from the date of its posting.