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

Dealings in the shares of the Company on the Exchange has been suspended since 24 June 2002. Since its suspension, the Company has not submitted any valid resumption proposal. A valid resumption proposal means a proposal that, if it was implemented, would enable an issuer to demonstrate that it complies with paragraph 38 of the Listing Agreement entered into between the Company and the Exchange. 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.

In view of the absence of any resumption proposal prior to the expiry of the second stage of the Delisting Procedures and the Company's continued failure to meet the requirements as stipulated under Paragraph 38 of the Listing Agreement, the Company will now proceed 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 23 December 2003, the Exchange intends to cancel the listing of the shares of the Company.

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