Hong Kong, April 28, 2002 - Yip's Chemical Holdings Limited ("Yip's Chemical") (SEHK: 408) today announced that it had entered into a preliminary land purchase agreement with the government of Huiyang New Town at Guangdong Province, the People's Republic of China (the "PRC") and both parties signed the "Land Transfer Agreement" on April 25, 2002. Yip's Chemical is engaged in the manufacture and distribution of high molecular chemical products and mixed solvents, paints, inks, raw solvents and lubricants.

Mr. Tony IP Chi-shing, Chairman and Managing Director of Yip's Chemical, said: "The Group's existing petrochemical manufacturing plant at Buji is already operating at full capacity, and the management believes that the development potential of the petrochemical market and products will continue to be substantial. Acknowledging the need to prepare the Group for future expansion, we had come to this investment decision after detailed consideration and study."

Yip's Chemical will invest HK$100 million on land purchase, plant construction and equipment procurement. The existing petrochemical plant at Buji is planned to be relocated to the new plant in two years. The new plant is situated at the south section of the Huabinling Industrial Zone adjacent to the Huiyang-Shenzhen Highway at Huiyang City, Guangdong Province, the PRC. The site covers 150,000 square meters, three times larger than the existing plant.

Yip's Chemical presently operates manufacturing plants in the Guangdong, Sichuan, Shandong and Jilin Provinces of the PRC. It has also established an extensive product sales and distribution network, covering major cities such as Shenzhen, Guangzhou, Chengdu, Shanghai, Xian, Zhengzhou, Jinan, Beijing, Shanyang and Changchun, etc.

Yip's Chemical Holdings Limited (SEHK: 408, formerly named Yip's Hang Cheung (Holdings) Limited) is primarily engaged in the manufacture and distribution of petrochemical products, which include high molecular chemical products and mixed solvents, paints, raw solvents, lubricants and inks. The Group operates production plants and sales network in major cities in the PRC. In 1995, the Group's subsidiary, Bauhinia Paints Manufacturing Limited, became the first paint manufacturer in Hong Kong awarded with ISO 9001 quality assurance certification. This achievement reflects the Group's longstanding commitment to enhance product and service quality, and to bring in advanced technology to strengthen competitiveness and improve cost efficiency.