ANNOUNCEMENT

In relation to the matter of GKC Holdings Limited (the "Company") Cancellation of Listing
In accordance with the delisting procedures stipulated in Practice Note 17 of the Exchange Listing Rules

The Exchange announces that the listing of the shares of the Company will be cancelled with effect from 10:00 a.m. on 21 December 2000 in accordance with the delisting procedures stipulated in Practice Note 17 of the Listing Rules (the "Delisting Procedures"). Practice Note 17 formalises the procedures to be adopted to delist long-suspended companies.

Dealings in shares of the Company have been suspended since 3 July 1998. Therefore, the Company's shares have effectively been suspended for over 29 months. Since the suspension, the Company has not been able to implement a valid resumption proposal.

The Company has been put into the third stage of the Delisting Procedures since 17 September 1999. Pursuant to the Delisting Procedures, at the end of the third stage, where no valid proposals have been received for resumption, the listing of the Company's shares will be cancelled. The Company submitted a resumption proposal (the "Proposal") on 6 March 2000 and the Exchange granted an extension of the delisting of the Company for three months to 16 June 2000 for the processing of the Proposal. Based on the timetable of the Proposal and in order to allow time for its implementation, the delisting deadline was further extended solely for such purpose. On 4 August 2000, it was announced by the Company that the Proposal could not become unconditional and would not proceed, and a conditional extension of the delisting of the Company was further granted by the Exchange until 18 August 2000 (the "Deadline") solely for the Company to provide details of a new resumption proposal, which was first submitted to the Exchange on 25 July 2000. As the Company was not able to fulfill the conditions acceptable to the Exchange by the Deadline, the Exchange will cancel the listing of the Company as of the date and time referred to above.

The Company was notified on 14 December 2000 of its obligation under paragraph 3.1 of Practice Note 17 of the Listing Rules to issue an announcement informing the public of the cancellation of its listing.

If you are a shareholder of the Company and you have any queries about the implications of the delisting, you are advised to obtain appropriate professional advice.

Corporate Communications