10th Aug, 2004  
The Board of Directors of Inno-Pacific Holdings Ltd (the “Company”) is pleased to announce that the Company has today entered into separate Conditional Placement Agreements (“Placement Agreements”) with Infinite Results Holdings Corp. and Lim Siew Hooi (collectively “the Subscribers”) to place out a total of 35,000,000 new ordinary shares of S$0.01 each in the capital of the Company (“Placement Shares”) at the placement price of S$0.023 per Placement Share (“the Placement Price”) to the Subscribers as follows:-

Subscribers   Number of Placement Shares
Infinite Results Holdings Corp.   23,000,000
Lim Siew Hooi   12,000,000

The Placement is conditional upon receipt of in-principle approval from the Singapore Exchange Securities Trading Limited (“SGX-ST”) for the listing and quotation of the Placement Shares on the SGX-ST.

The Placement Price represents a discount of approximately 9.8% to the weighted average price of $0.0255 for trades done on the ordinary shares of the Company on the SGX-ST today.

The Placement Shares represent approximately 7.34% of the existing issued and paid-up share capital of the Company and approximately 6.84% of the enlarged issued and paid-up share capital of the Company.

The Placement Shares will be allotted and issued pursuant to the general mandate to issue shares by way of an ordinary resolution by the shareholders of the Company at its annual general meeting held on 30 April 2004.

When issued, the Placement Shares will be credited as fully paid-up and will rank pari passu in all respects with the existing ordinary shares in the capital of the Company.

The net proceeds from the Placement, after deducting expenses related to the Placement, is estimated to be approximately $790,000 and will be utilised for working capital purposes of the Group.

As at the date of this announcement, the issued and paid-up share capital of the Company is $4,769,007.69 comprising 476,900,769 ordinary shares of $0.01 each. When completed, the Placement will increase the existing issued and paid-up share capital of the Company to 511,900,769 ordinary shares. Based on the audited financial statements of the Group as at 31 December 2003, the net tangible assets per share of the Group, after adjusting for the issue of the Placement Shares, will increase from 2.00cents to 2.02cents.

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

Wong Chin Yong
Managing Director

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Submitted by Wong Chin Yong, Managing Director on 10/08/2004 to the SGX