ANNOUNCEMENT -- In relation to the matter of Far East Pharmaceutical Technology Company Limited (Provisional Liquidators Appointed) (Stock Code: 399) Proceeding to the third stage of the delisting procedures as stipulated under Practice Note 17 to the Listing Rules

Regulatory

17 Oct 2005

THE STOCK EXCHANGE OF HONG KONG LIMITED
(A wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited)

ANNOUNCEMENT

In relation to the matter of Far East Pharmaceutical Technology Company Limited
(Provisional Liquidators Appointed)
(Stock Code: 399)

Proceeding to the third stage of the delisting procedures
as stipulated under Practice Note 17 to the
Rules Governing the Listing of Securities on
The Stock Exchange of Hong Kong Limited (the Listing Rules)

The Exchange announces that effective from the date of this announcement, the Company will be put into the third stage of the Delisting Procedures.

Pursuant to the Delisting Procedures, the Company will be given a final six months for the submission of a valid resumption proposal to the Exchange. If the Company does not put forward a valid resumption proposal by 16 April 2006, being six months from the date of this announcement, the Exchange intends to cancel the listing of the Company.

The Stock Exchange of Hong Kong Limited (the Exchange) announces that effective from the date of this announcement, Far East Pharmaceutical Technology Company Limited (Provisional Liquidators Appointed) (the Company) will be placed into the third stage of the delisting procedures in accordance with Practice Note 17 to the Listing Rules (Delisting Procedures). 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 17 June 2004. At the end of the second stage of the Delisting Procedures, the Company has not submitted valid resumption proposal. A valid resumption proposal, among other things, would enable the Company to demonstrate that it complies with Listing Rule 13.24. Under Listing Rule 13.24, the Company is required to carry out, directly or indirectly, 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 Company's shares on the Exchange. Besides, given the circumstances of this case, the Company is required to (a) address to the Exchange's satisfaction concerns about the circumstances leading to the unusual price and volume movement in the Company's shares on 17 June 2004; (b) clarify the financial position and operations of the Group; (c) address the various allegations against the Company, its directors and controlling shareholder already highlighted by the Exchange to the Company; and (d) take steps to rectify deficiencies in its internal control system to ensure compliance with the disclosure and financial reporting obligations.

In view of the absence of valid resumption proposal and the Company's continued failure to demonstrate its compliance with the requirements stipulated under Listing Rule 13.24, the Company will now be placed in the third stage of the Delisting Procedures. The Company will have a final six months for the submission of a valid resumption proposal. If the Company does not submit a valid resumption proposal by 16 April 2006, 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.

Updated 17 Oct 2005