IGG Inc — Capital/Financing Update 2011

Feb 17, 2011

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

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ORIENTAL WATCH HOLDINGS LIMITED

(Incorporated in Bermuda with limited liability)

(the “Company”)

(Stock Code: 398)

DISCLOSEABLE TRANSACTION

The Purchaser entered into a provisional sale and purchase agreement on 16th February, 2011 for the acquisition of the Property.

The Vendor is not connected with the Company, any directors, chief executive officer or substantial shareholders of the Company or any of its subsidiaries or their respective associates.

The Agreement constitutes a discloseable transaction of the Company under the Listing Rules.

PROVISIONAL SALE AND PURCHASE AGREEMENT DATED 16TH FEBRUARY, 2011 (THE “AGREEMENT”)

Parties:

Vendor: Young Hero Trading Limited (the “Vendor”)

Purchaser: Unex Development Limited (the “Purchaser”), a wholly owned subsidiary of the Company

Assets acquired:

The property at Shop No. 80 of Retail Portions on the Ground Floor of Commercial Podium Mandarin Plaza, No. 14 Science Museum Road, Kowloon, Hong Kong (the “Property”).

The Property comprises one shop on the ground floor of Commercial Podium Mandarin Plaza with total saleable area of 3,700 approximately sq.ft. The Property is currently vacant.

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Consideration:

HK$100,000,000 in cash.

The consideration was arrived at after arm’s length negotiations.

The directors of the Company consider that the terms of the acquisition are fair and reasonable and in the interests of the shareholders as a whole.

Payment terms:

The purchase price shall be paid in cash as follows:

1. an initial deposit of HK$5 million on signing of the Agreement;

2. a further deposit of HK$5 million on or before 2nd March, 2011; and

3. the balance on or before completion.

Funding:

The purchase price will be funded from internal resources and available banking facilities.

Completion date:

The Agreement is expected to be completed on or before 16th August, 2011.

REASONS FOR THE TRANSACTION

The Purchaser entered into the Agreement for investment in the Property for investment purposes.

CONNECTION BETWEEN THE PARTIES

The Company confirms that, to the best of the directors’ knowledge, information and belief having made all reasonable enquiry, the Vendor and its ultimate beneficial owner are independent third parties not connected with the Company, any directors, chief executive officer or substantial shareholders of the Company or any of its subsidiaries or their respective associates.

INFORMATION FOR SHAREHOLDERS

The Company and its subsidiaries (the “Group”) are principally engaged in watch trading.

The Vendor is principally engaged in investment in properties.

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The Group does not have any transaction with the Vendor which is required to be aggregated with the acquisition under Rule 14.22 of the Listing Rules.

For the Company, the acquisition is a discloseable transaction under the Listing Rules.

By Order of the Board Oriental Watch Holdings Limited Lam Hing Lun, Alain Company Secretary

Hong Kong, 17th February, 2011

As at the date of this announcement, the executive directors of the Company are Mr. Yeung Ming Biu, Mr. Yeung Him Kit, Dennis, Mr. Fung Kwong Yiu, Ms. Yeung Man Yee, Shirley, Mr. Lam Hing Lun, Alain and Mr. Choi Kwok Yum, and the independent non-executive directors are Dr. Sun Ping Hsu, Samson, Dr. Li Sau Hung, Eddy and Mr. Choi Man Chau, Michael.

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