Incorporation Of Wholly-Owned Subsidiary In Shanghai, People's Republic Of China

The Board of Directors of Sunningdale Precision Industries Ltd (the "Company") is pleased to announce that the Company has incorporated a wholly-owned subsidiary in Shanghai, People's Republic of China known as Sunningdale Precision Technology (Shanghai) Co Ltd. (the "Subsidiary"). The registered capital of the Subsidiary is US$11.92 million to be paid up as follows: (a) US$1.788 million shall be paid up by 17 August 2004 and (b) the remaining US$10.132 million shall be paid up by 17 May 2007. Twenty percent of the registered capital shall be paid in cash and the remaining eighty percent of the registered capital shall be injected in the form of assets. The principal activities of the Subsidiary include, among other things, the design and manufacture of precision moulds for automobile parts and the injection moulding of precision engineering plastics components for automobile parts.

The formation of the Subsidiary is not expected to have a material impact on the net earnings or the net tangible assets of the Company for the financial year ending 31 December 2004.

None of the Directors or substantial shareholders of the Company has any interest, direct or indirect, in the Subsidiary.


By Order of the Board
Soh Hui Ling
Secretary