The Exchange announces that, effective from the date of this announcement, King Pacific International Holdings Limited (in liquidation) (the "Company") will be placed to the third stage of the delisting procedures (the "Delisting Procedures") specified in Practice Note 17 of the Exchange Listing Rules. Practice Note 17 formalises the procedures to be adopted in dealing with long-suspended companies.

Dealing in the shares of the Company has been suspended since 6 November 2000. Since its suspension, the Company has not been able to implement a valid resumption proposal. A valid resumption proposal means a proposal that, if implemented, would enable an issuer to demonstrate that it complies with paragraph 38 of the Listing Agreement. Paragraph 38 of the Listing Agreement requires an issuer to carry out a sufficient level of operations or have tangible assets of sufficient value and/or intangible assets for which a sufficient potential value can be demonstrated to the Exchange to warrant the continued listing of the issuer's securities on the Exchange.

As the Company is being wound up and its assets apportioned by the provisional liquidator, the Company will now be placed to the third stage of the Delisting Procedures. The Company will be given a final six months for the submission of a valid resumption proposal. If the Company does not submit a valid resumption proposal by 17 March 2003, the Exchange intends to cancel the listing of the Company.

The Exchange will make a further announcement in due course if the delisting takes place.