Planetree International Development Limited — Share Issue/Capital Change 2000

Jun 13, 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.

YUGANG INTERNATIONAL LIMITED

（渝 港 國 際 有 限 公 司）*

(incorporated in Bermuda with limited liability)

ANNOUNCEMENT

Adjustment of Subscription Price relating to the Outstanding Warrants

The subscription price in respect of the outstanding warrants of Yugang International Limited (the "Company") has been adjusted from HK$0.21 per share of HK$0.10 each ("Share", together "Shares") to HK$0.105 per Share with effect from 13th June 2000.

Further to the announcement dated 9th May 2000 and the circular dated 18th May 2000, the board of directors of the Company are pleased to announce that the ordinary resolution approving the bonus issue ("Bonus Issue") of Shares to shareholders who are on the register of members of the Company on 12th June 2000 on the basis of one new Share for every existing Share held on 12th June 2000 was duly passed at the annual general meeting of the Company held on 12th June 2000. Application has been made to the Listing Committee of The Stock Exchange of Hong Kong Limited for the listing of and permission to deal in the new Shares to be issued pursuant to the Bonus Issue. All the conditions relating to the Bonus Issue are expected to be fulfilled on or before 20th June 2000. The Bonus Issue has resulted in an adjustment to the subscription price in respect of the warrants of the Company, which were previously created by an instrument dated 6th September 1999, conferring rights to subscribe in cash for new shares of the Company at any time up to and including 15th September 2001 (the "Warrants"). Pursuant to the provisions of the abovementioned instrument dated 6th September 1999 (the "Warrant Instrument"), the subscription price in respect of the Warrants has been, with effect from 13th June 2000, adjusted from HK$0.21 per Share to HK$0.105 per Share, which has been certified by Messrs. Ernst & Young, to be appropriate in accordance with the terms of the Warrant Instrument.

Apart from the abovementioned adjustment of the subscription price, all the terms and conditions of the Warrant Instrument will remain unchanged. All currently valid certificates of the Warrants previously issued to holders thereof will continue to be valid documents of title to the Warrants notwithstanding the adjustment of the subscription price.

By Order of the Board

Cheung Chung Kiu

Chairman

Hong Kong, 13th June 2000

* For identification purpose only