Novautek Technologies Group Limited — M&A Activity 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.

KONG SUN HOLDINGS LIMITED

(Incorporated in Hong Kong with limited liability)

ANNOUNCEMENT

The Board has noted that the increase in trading volume of the shares of the Company today and confirms that the Company intends to dispose of a non wholly-owned subsidiary to a Canadian company, which is an independent third party not connected with the directors, chief executive, or substantial shareholders of the Company or any of its subsidiaries or any of their respective associates.

Shareholders and investors are advised to exercise caution when dealing in the securities of the Company.

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

The board of directors (the "Board") has noted that the increase in trading volume of the shares of the Company today.

The Board would like to confirm that the Company intends to dispose of a non wholly-owned subsidiary (the "Disposal"), which engages in the sale of computer products, provision of training for computer use and educational software development, to a Canadian company, which is an independent third party not connected with the directors, chief executive, or substantial shareholders of the Company or any of its subsidiaries or any of their respective associates. In the meantime, the Disposal is under negotiation and in the preliminary stage so no terms, conditions or agreement is reached. If the Disposal is made, the Company will comply with the relevant requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules"). The Disposal may or may not proceed. Shareholders and investors are advised to exercise caution when dealing in the securities of the Company. Further announcement will be made as and when appropriate in accordance with the Listing Rules.

Save as disclosed above, the Board confirms that there are no negotiations or agreements relating to intended acquisitions or realizations 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 this statement.

By Order of the Board

Kong Li Szu

Executive Director

Hong Kong, 17 October 2000