Hong Kong, April 9, 2001 - Shenzhen High-Tech Holdings Limited ("Shenzhen High-Tech") (SEHK: 106) today announces its audited consolidated annual results for the year ended December 31, 2001 with a total turnover amounted to HK$27,147,000 and loss attributable to shareholders in the amount of HK$209,659,000. The increase in net loss is mainly the result of the Group's provision for diminutions in the value of the Group's investment and properties in a total amount of about HK$154 million, representing nearly 75% of the year's total loss. Such provision is a one-off arrangement and non recurring. The Group has no other plan for similar provision in the foreseeable future. As the Group seeks opportunities to realize its properties and focus its resources and investments on profitable advanced technology-led business operations, the management is confident that the Group's results will be improved in future.

In the past year, the Group has been endeavouring in debt restructuring and corporate re-engineering while at the same time, focusing on developing business opportunities in advanced technology and information industry. The Group has now completed the debt and business restructuring exercise. It has successfully settled all bank loans and basically, the Group has no more debts and a net cash balance in hand of over HK$100 million. The management will continue to persist its usual prudent principle employed for financial management so as to strictly control the Group's various business borrowing.

While pursuing its business repositioning exercise, the Group, at the same time, carried out management re-engineering, gradually improving its organizational structure and management system as well as introducing incentive schemes including share options. The Group has also invited international as well as China's renowned management consultant to carry out a full scale study and consultation programme on the Group's current and future business development and strategy.

In March 2001, the Group entered into a sale and purchase agreement to acquire the entire interest of Dawning Information Industry Company Limited ("Dawning") for a total consideration of RMB215,000,000 (approximately HK$201,000,000). Dawning is a well-known, branded high performance computer systems and servers provider, being the only company in China that has the capabilities to research, develop, produce and sell an extensive range of different grades of computer servers. The completion of acquisition would result in Dawning becoming one of the Group's information industry core business operations. "Dawning is currently actively pursuing cooperation with corporate clients from different industries, data centers as well as application services providers (ASPs) to expand and develop its business in the high performance servers market. Capitalizing on its already established brand name and reputation, Dawning promotes domestic small size servers within the country so as to increase its market share in the servers market." Said Mr Gong Hanbing, Director of Dawning, Executive Director and President of Shenzhen High-Tech.

Dawning is in the process of negotiating with a number of well known multi-national information technological companies and manufacturers to work together on the design, development and production of low to medium range servers as well as the related chips and circuit boards with a view to opening up the international market.

Shenzhen High-Tech Holdings Limited ("Shenzhen High-Tech") (SEHK: 106) has its business focus on developing business operations in advanced technology and information industry in Greater China. With the management devoting keen efforts in reorganizing its business operations in recent years, the Group has accomplished its debt restructuring and business repositioning exercise. Acquisition of Dawning Information Industry Company Limited ("Dawning") would signify the Group's new focus and core business operations in advanced technology and information industry.