Incorporation of Wholly-Owned Subsidiary In Tianjin, 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 Tianjin, People's Republic of China known as Sunningdale Innovation Technology (Tianjin) Co Ltd. (the "Subsidiary"). The registered capital of the Subsidiary is US$3 million.

The principal business of the Subsidiary is in the design and manufacturing of precision moulds and the injection moulding of precision engineering plastic components. It is also engaged in the contract manufacturing of assembled plastic products.

The Subsidiary will share a newly lease facility with one of its major customers, Sanko Gosei Limited ("Sanko Gosei") as part of the integrated operations to undertake new telecommunication projects.

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