Wang On Group Limited — Capital/Financing Update 2004

Jul 7, 2004

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.

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WANG ON GROUP LIMITED （宏安集團有限公司） *

(Incorporated in Bermuda with limited liability)

(Stock Code: 1222)

DISCLOSEABLE TRANSACTION

On 5 July 2004, the Purchaser entered into the Agreement with the Confirmor for the sale and purchase of the Property. The consideration for the acquisition of the Property by the Purchaser is HK$19,800,000. The transaction contemplated under the Agreement constitutes a discloseable transaction of the Company under Chapter 14 of the Listing Rules.

THE AGREEMENT

• Date : 5 July 2004

• Confirmor : Asia Champion Trading Limited, being an Independent Third Party Purchaser : Hansun Investment Limited, a wholly-owned subsidiary of the Company

• Property : Ground floor and cockloft, No. 203 Tung Choi Street, Mongkok, Kowloon, Hong Kong, with a total gross floor area of approximately 1,870 square feet, for commercial use

Consideration : HK$19,800,000

The Agreement was entered into between the Purchaser and the Confirmor pursuant to which the parties have agreed on the sale and purchase of the Property. The Property was acquired subject to two existing tenancies with a monthly rental of HK$67,000 and HK$10,000, both expiring on 31 May 2006. An assignment dated 5 July 2004 was also signed among the Purchaser, the Confirmor and the Vendor in relation to the sale and purchase of the Property.

The Agreement was completed upon payment of the consideration for the purchase of the Property on 5 July 2004. The Directors confirm that the consideration for the Property have been determined after arm’s length negotiations between the Confirmor and the Purchaser by reference to the market value of similar properties in the same location.

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REASONS FOR AND BENEFITS OF THE ACQUISITION OF THE PROPERTY

The Group is principally engaged in the management and sub-licensing of Chinese wet markets, shopping centres and car parks, retail business, property development and property investment. It also has interests in the pharmaceutical business through its investments in Wai Yuen Tong Medicine Holdings Limited, a company listed on the Stock Exchange.

The Directors believe that the acquisition of the Property represents an investment opportunity for the Group with rental income as well as enhancing its property portfolios. The acquisition of the Property was funded by internal resources of the Group.

The Directors are of the view that the acquisition of the Property is in the interest of the Company and the terms of the Agreement are on normal commercial terms, which are fair and reasonable as far as the shareholders of the Company are concerned.

GENERAL

The transaction contemplated under the Agreement constitutes a discloseable transaction of the Company under Chapter 14 of the Listing Rules. A circular in connection with the acquisition of the Property will be despatched to the shareholders of the Company as soon as practicable.

The Directors comprises three executive Directors, namely Mr. Tang Ching Ho, Ms. Yau Yuk Yin and Mr. Chan Chun Hong, Thomas, and three independent non-executive Directors, namely Dr. Lee Peng Fei, Allen, Mr. Wong Chun, Justein and Dr. Siu Yim Kwan, Sidney.

DEFINITIONS

In this announcement, the following terms have the following meanings:

• “Agreement” the agreement dated 5 July 2004 entered into between the Purchaser and the Confirmor for the sale and purchase of the Property

• “Board” the board of Directors

• “Company” Wang On Group Limited, a company incorporated in Bermuda and the shares of which are listed on the Stock Exchange

• “Confirmor” Asia Champion Trading Limited, the confirmor under the Agreement, which and the ultimate beneficial owner of which are Independent Third Parties

• “Directors” the directors of the Company

• “Group” the Company and its subsidiaries

• “Independent Third (an) independent third party(ies) not connected with the Directors, Party(ies)” chief executive or substantial shareholders of the Company or any of its subsidiaries or their respective associates (as defined in the Listing Rules)

• “Listing Rules” the Rules Governing the Listing of Securities on the Stock Exchange

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“Property” Ground floor and cockloft, No. 203 Tung Choi Street, Mongkok, Kowloon, Hong Kong “Purchaser” Hansun Investment Limited, a wholly-owned subsidiary of the Company “Stock Exchange” The Stock Exchange of Hong Kong Limited “Vendor” Snowberg Limited, which and the ultimate beneficial owner of which are Independent Third Parties, being the vendor in relation to the sale and purchase of the Property

By Order of the Board Tang Ching Ho Chairman and Managing Director

• For identification purpose only

Hong Kong, 6 July 2004

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

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