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Regent Pacific Group Limited M&A Activity 2002

May 13, 2002

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KGI INTERNATIONAL HOLDINGS LIMITED

(Incorporated in the Cayman Islands with limited liability)

ANNOUNCEMENT

Reference is made to the announcement dated 3 May, 2002 issued by KGI International Holdings Limited ("KGI"), KGI wishes to announce that discussions between KGI and Mr. James Mellon and Mr. Jamie Gibson, directors of iRegent Group Limited ("iRegent"), in respect of KGI's proposed pre-conditional possible voluntary conditional general offer for all the securities of iRegent (the "Offer") have been terminated effective 10:00 p.m. Hong Kong time on 10 May 2002.

KGI wishes to thank Mr James Mellon and Mr Jamie Gibson for their efforts in the discussions.

On behalf of the Board of

KGI International Holdings Limited

Pun Kin Wa

Director

Hong Kong, 13 May 2002

The directors of KGI jointly and severally accept full responsibility for the accuracy of the information contained in this announcement and confirm, having made all reasonable enquiries, that to the best of their knowledge, their opinions expressed in this announcement have been arrived at after due and careful consideration and there are no other facts not contained in this announcement, the omission of which would make any of their statements in the announcement misleading.

"Please also refer to the published version of this announcement in the Hong Kong i-mail"