Hong Kong, October 4, 2001 - Chinese restaurants and bakery chain Kamboat Group Company Limited (SEHK : 318) today announces that the Group's placing and new issue has been fully subscribed. The Group received a total of 166 valid applications on white and yellow forms for a total of 17,355,000 shares, equivalent to about 1.7 times of the 10,350,000 shares available for public subscription (not including the 1,150,000 shares for subscription by staff on pink forms). The 103,500,000 placing shares for professional and institutional investors were also fully subscribed. The Group's initial public offer was sponsored by Kingston Corporate Finance Limited.

An established gourmet brand in Chinese cuisine, bakery and food products, Kamboat Group at present operates 5 Chinese restaurants, 23 bakery outlets with 3 production facilities in Hong Kong.

The Group issued a total of 115 million new shares at an offer price of HK$0.5 per share, on the basis of which the Group's market capitalization will amount to HK$230 million. The net proceeds from the issue of new shares will total HK$43.5 million. To be in a better position to increase the market share of its services and products, the Group intends to utilize HK$20 million from the proceeds to open new Chinese restaurants and bakery outlets in Hong Kong, HK$12 million for the establishment of bakery and other food products production facilities in the PRC, HK$3 million for marketing and advertising activities of the Group and HK8.5 million for the general working capital of the Group.

Refund cheques or original uncleared remittances will be posted by Friday, October 5, 2001. Share certificates are also expected to be despatched on the same day. Dealings in the Group's shares are expected to commence on the main board of the Stock Exchange of Hong Kong on Tuesday, October 9, 2001.

Issued by :
Kamboat Group Company Limited

Through :
t6.communications limited
Jenny Lee or Angus Ho
tel: 2511 8388 / fax: 2511 8238
email: enquiry-at-t6pr.com (use "@" to replace "-at-")
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