PegBio Co., Ltd. — Capital/Financing Update 2005

Feb 23, 2005

(Incorporated in Bermuda with limited liability) (Stock Code: 1141)

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RESULTS OF THE OPEN OFFER

The Directors announce that 22 valid applications were received for an aggregate of 402,956,345 Offer Shares under the Application Forms and 35 valid excess applications were received for a further 113,746,200 Offer Shares under the Excess Application Forms, by 4:00 p.m. on Friday, 18th February, 2005, being the latest time for the application and payment for the Offer Shares. On the basis of an aggregate of 516,702,545 Offer Shares being applied for, approximately 93.7% of the total number of 551,360,095 Offer Shares offered under the Open Offer were applied for by the Shareholders.

The Open Offer has become unconditional from 4:00 p.m. on Wednesday, 23rd February, 2005.

Reference is made to the press announcement of the Company dated 14th January, 2005 and the prospectus of the Company dated 4th February, 2005 (the “Prospectus”) in relation to the Open Offer. Pursuant to the Open Offer, Qualifying Shareholders were offered the right to apply for Offer Shares with assured allotments on the basis of one Offer Share for every two Shares held on the Record Date, at the price of HK$0.04 per Share. Capitalised terms used herein have the same meanings as defined in the Prospectus unless otherwise stated.

RESULTS OF THE OPEN OFFER

By 4:00 p.m. on Friday, 18th February, 2005, being the latest time for application and payment for the Offer Shares, 22 valid applications were received for an aggregate of 402,956,345 Offer Shares under the Application Forms and 35 valid excess applications were received for a further 113,746,200 Offer Shares under the Excess Application Forms. On the basis of an aggregate of 516,702,545 Offer Shares being applied for, approximately 93.7% of the total number of 551,360,095 Offer Shares offered under the Open Offer were applied for by the Shareholders. Shareholders applying for excess Offer Shares under the Excess Application Forms have been fully allotted with the excess Offer Shares they applied for. Vision Century, the controlling Shareholder, has subscribed for the 341,047,975 Offer Shares provisionally allotted to it but did not make any excess application.

The Open Offer has become unconditional from 4:00 p.m. on Wednesday, 23rd February, 2005.

UNDERWRITING ARRANGEMENTS

Based on the results of the Open Offer referred to above, the Open Offer was under-subscribed by 34,657,550 Offer Shares (the “Shortfall Offer Shares”). Pursuant to the Underwriting Agreement, Kingston Securities Limited, has procured the subscription for all the Shortfall Offer Shares by an independent third party. The Shortfall Offer Shares represent approximately 6.3% of the Offer Shares and approximately 2.1% of the Company’s enlarged issued share capital of 1,654,080,285 Shares immediately after completion of the Open Offer. All subscription monies for the Shortfall Offer Shares have been received by the Company as at the date of this announcement.

SHARE CERTIFICATES

Share certificates for the Offer Shares will be despatched on Thursday, 24th February, 2005 by ordinary post to the Qualifying Shareholders, at their own risk, to the addresses specified in the register of members of the Company.

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SHAREHOLDING STRUCTURE OF THE COMPANY

The following is a summary of the shareholding structure of the Company before and upon completion of the Open Offer:

	n of the Open Offer:	n of the Open Offer:
ShareholVision CDirectors of theIndependTotal	derenturyof the subsidiariesCompanyent Shareholders	Shareholding bcompletionof the OpenNumber of Shares682,095,95016,000420,608,2401,102,720,190	efore	Shareholdi	g uponionn Offers561.00.038.5100.		%901
			Offer%61.90.038.1100.0	completof the OpeNumber of Share1,023,143,9216,00630,920,36
				1,654,080,28		100.	0
					e BoardCharlesn
				On behalf of thLo Ming Chi,Chairma
	ng, 23rd February, 2005date of this announcement, the Board comprises Mr. Lo Ming Chi, Charlesai Man, Mr. Wilson Ng, Mr. Ng Wee Keat, Mr. Ng Teow Leng and Mr. Ntive Directors and Mr. Wong Kwok Tai, Mr. Lau Pok Lam and Mr. Ko Kindependent non-executive Directors.entification only				(Chairmang Eng Lenwong Woon

Hong Kong, 23rd February, 2005

As at the date of this announcement, the Board comprises Mr. Lo Ming Chi, Charles (Chairman), Mr. Yu Wai Man, Mr. Wilson Ng, Mr. Ng Wee Keat, Mr. Ng Teow Leng and Mr. Ng Eng Leng as executive Directors and Mr. Wong Kwok Tai, Mr. Lau Pok Lam and Mr. Ko Kwong Woon, Ivan as independent non-executive Directors.

• For identification only

Please also refer to the published version of this announcement in The Standard.

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