Vision Values Holdings Ltd. — M&A Activity 1999

Oct 29, 1999

Listed Company Information

WAH YIK HOLD<0862> - Announcement 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. WAH YIK HOLDINGS COMPANY LIMITED (Incorporated in the Cayman Islands with limited liability) Recent Price Movement/Proposed investment in joint venture Wah Yik Holdings Company Limited (the "Company" which together with its subsidiaries the Group") has commenced preliminary negotiations with a multinational company (the "Multinational Company") with division companies engaging in business covering electronics, advanced information technology, plant and industrial machinery, aerospace and multimedia for the proposed establishment of a joint venture (the "Proposed Joint Venture") in Hong Kong or the People's Republic of China. The purpose of setting up the Proposed Joint Venture is to extend the existing business of the Group. The Multinational Company is an independent third party not connected with the directors, chief executive, substantial shareholder of the Company or any of its subsidiaries or any of their respective associates. The board of directors (the "Directors") of the Company wish to state that the Proposed Joint Venture may or may not proceed. The Directors are not aware of any reason for the recent increase in the price and trading volume of the shares of the Company and wish to state that they are not aware of any reasons for such increase apart from the Proposed Joint Venture forming the subject matter of this announcement. In the meantime, public investors are urged to exercise extreme caution in dealing in the shares of the Company. This announcement is made at the request of The Stock Exchange of Hong Kong Limited (the "Stock Exchange"). The Directors noted that the recent increase in the price and trading volume of the shares of the Company and wish to state that they are not aware of any reasons for such increases apart from the Proposed Joint Venture forming the subject matter of this announcement. The Directors announced that the Company had commenced preliminary negotiation since the beginning of October 1999 with the Multinational Company with division companies engaging in business covering electronics, advanced information technology, plant and industrial machinery, aerospace and multimedia. The purpose of setting up the Proposed Joint Venture is to extend the existing business of the Group. The Multinational Company is an independent third party not connected with the directors, chief executive, substantial shareholder of the Company or any of its subsidiaries or any of their respective associates for the Proposed Joint Venture. The Directors wish to state that the Proposed Joint Venture may or may not proceed and, in particular, negotiations for the Proposed Joint Venture are only at a preliminary stage. The Directors confirm that the shareholding distribution, object and business of the joint venture, form of financing, the timing and other details of the Proposed Joint Venture have not been finalised. No binding agreement has been entered into by the Company and the relevant parties. The Proposed Joint Venture may or may not constitute a transaction notifiable under Chapter 14 of the Rules Governing the Listing of Securities on the Stock Exchange. The Company will keep the public informed by making further announcements on the results of the negotiations of the Proposed Joint Venture. The Directors also confirm that there are no negotiations or agreements relating to intended acquisitions or realisations which are discloseable under paragraph 3 of the Listing Agreement made between the Company and the Stock Exchange and apart from the Proposed Joint Venture, the Directors are not aware of any matter which is discloseable under paragraph 2 of the Listing Agreement. In the meantime, public investors are urged to exercise extreme caution in dealing in the shares of the Company. Made by order of the Board of the Company, the directors of the which individually and jointly accept responsibility for the accuracy of this statement. By Order of the Board Hui Mang Mang Chairman Hong Kong, 28th October, 1999