Matrix Holdings Limited — Major Shareholding Notification 2000

Oct 18, 2000

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.

MATRIX HOLDINGS LIMITED

(Incorporated in Bermuda with limited liability)

Announcement

The Board has noted the increase in the trading volume of the Shares of the Company today and wishes to state that it is not aware of any reasons for such increase except that the Offeror has disposed of 4,330,000 Shares in the Company, representing approximately 3% of the existing issued share capital of the Company.

This statement is made at the request of The Stock Exchange of Hong Kong Limited (the "Stock Exchange").

Reference is made to the announcement of Matrix Holdings Limited (the "Company") dated 30 September 2000 (the "Announcement") in relation to, inter alia, the insufficient public float of 14.84% of the then issued share capital of the Company and also to the composite offer document issued by the Company dated 8 September 2000.

The board of directors (the "Board") of the Company has noted the increase in the trading volume of the shares of HK$0.10 each in the Company (the "Shares") today and wishes to state that it is not aware of any reasons for such increase except that Suncorp Investments Group Limited (the "Offeror") has disposed of 4,330,000 Shares in the Company, representing approximately 3% of the existing issued share capital, at an average price of HK$0.30 per share on the market. Such number of Shares disposed by the Offeror accounted for approximately 93% of the aggregate trading volume of the Shares of the Company today.

It was stated in the Announcement that the Offeror will appoint a placing agent to place down its Shares in order to restore the public float of the Company from 14.84% to not less than 25% by 30 October 2000.

The Company has been informed by the Offeror that while it is still negotiating the terms of engagement with several prospective placing agents, the Offeror has endeavoured to dispose of certain number of its Shares on the market through its stock broker in an attempt to restore the public float to not less than 25%. The aggregate number of the Shares disposed by the Offeror since 30 September 2000 up to the date of this announcement amounted to approximately 7,000,000 Shares which represent 4.84% of the existing issued share capital of the Company. As a result, the public float has now be increased to 19.68% from 14.84%. The Company has also been informed by the Offeror that it will continue to attempt to dispose of its Shares through its stock broker with the view of complying with Rule 8.08 of the Listing Rules in respect of the minimum 25% public float requirement by 30 October 2000.

Save as the aforesaid share dealing, the directors confirm that there are no negotiations or agreements relating to intended acquisitions or realisations which are discloseable under paragraph 3 of the Listing Agreement, neither is the Board aware of any matter discloseable under the general obligation imposed by paragraph 2 of the Listing Agreement, which is or may be of a price-sensitive nature.

Made by the order of the Board of the Company, the directors of which individually and jointly accept responsibility for the accuracy of the above statement.

By order of the Board

Matrix Holdings Limited

Cheng Yung Pun

Chairman

Hong Kong, 17 October 2000

Please also refer to the published version of this announcement in the i Mail dated 18/10/2000.