Silkwave Inc — Share Issue/Capital Change 2001

Sep 28, 2001

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.

	SOUTH CHINA HOLDINGS LIMITED (incorporated in the Cayman Islands with limited liability)

ANNOUNCEMENT

DELAY IN DESPATCH OF SHARE CERTIFICATES

IN RESPECT OF DISTRIBUTION IN SPECIE OF SHARES IN

JESSICA PUBLICATIONS LIMITED

The Company wishes to advise that the time for despatch of the share certificates in relation to the distribution in specie of shares in Jessica Publications Limited by the Company would be extended to a date not later than 31st October, 2001.

Reference is made to the announcement dated 24th August, 2001 (the “Announcement”) made by the board of directors of the Company in relation to the distribution in specie of shares in Jessica Publications Limited by the Company. Unless otherwise stated, terms defined in the Announcement shall have the same meanings when used herein.

As stated in the Announcement, the Board has declared a special dividend on 24th August, 2001 to distribute Jessica Publications Shares to the Shareholders, including those Shareholders whose addresses as shown in the Hong Kong branch register of members of the Company at the close of business on the Record Date are outside of Hong Kong, by way of a special dividend of HK$0.000279 per Share to be paid not in cash but in specie on the basis of one Jessica Publications Share for every four Shares held on the Record Date.

According to the original schedule, definitive certificates for Jessica Publications Shares are expected to be despatched by mail to the Shareholders, at their own risk no later than 30th September, 2001. As additional time is required to prepare the certificates for Jessica Publications Shares, the Company has decided to extend the time for the despatch of the Jessica Publications Shares certificates to a date not later than 31st October, 2001.

By Order of the Board
South China Holdings Limited
Yuen Kam Tim, FrancisCompany Secretary27th September, 2001

Hong Kong Special Administrative Region of the People's Republic of China