Walnut Capital Limited — Net Asset Value 2005

May 17, 2005

HAYWOOD INVESTMENTS LIMITED

(Incorporated in the Cayman Islands with limited liability)

(Stock code : 905)

As at 30th April 2005, the unaudited consolidated net asset value per share of Haywood Investments Limited was approximately HK$0.094, after adjusting for the effect of the following corporate exercises duly approved at the Extraordinary General Meeting held on 17 March 2005:

• (1) increase in authorized share capital of the Company from HK$2,000,000 divided into 200,000,000 shares of HK$0.01 each to HK$10,000,000 divided into 1,000,000,000 shares of HK$0.01 each by the creation of an additional 800,000,000 unissued shares of HK$0.01;

• (2) consolidating every five existing ordinary shares of HK$0.01 par value each into two new ordinary shares of HK$0.025 par value each (“New Shares”); and

• (3) an open offer (“Open Offer”) for 80,000,000 New Shares issued at HK$0.065 per offer share, on the basis of one offer share for every New Shares held on record date of 17 March 2005. The Open Offer was completed on 18 April 2005, and resulted in an increase from 80,000,000 New Shares to 160,000,000 New Shares.

For on or behalf of the Board Mr. Phang Yul Cher Yeow Director

Hong Kong, 17 May 2005

At the date of this announcement, the Board is comprised of Mr. Wong Fong Kim, Mr. Tai Ah Lam, Michael, Mr. Phang Yul Cher Yeow, Mr. Tham Ming Yong and Mr. Tsun Kok Chung, Richard as executive directors. Mr. Cui Zanming as non-executive director, Dr. Wong Yun Kuen, Edward, Mr. Hsieh Dominick, Mr. Chang Kin Man and Ms. Lam Lin Chu as independent non-executive directors.

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

1