KanHan Announces Proposed Placement of 97,286,400 New Shares

(Hong Kong, August 5, 2004) ¢w KanHan Technologies Limited (KanHan) announced its proposed placement of 97,286,400 New Shares of the Group. A conditional Subscription Agreement with YesMobile Holdings Company Limited ("YesMobile") has been entered into on July 30, 2004 at the Subscription Price of aggregate HK$9 million, representing approximately HK$0.0925 per New Share. The New Shares represent 20% of the Group's existing issued share capital and approximately 16.67% of the enlarged issued share capital of the Group.

Immediately after the completion of the Placement and the disposal of 4,000,000 existing shares to ensure the sufficient public float of 25%, Mr. Lawrence Mo, Chairman & Chief Executive Officer of the Group will still be the controlling shareholder of the Group, holding 30.14% of the enlarged issued share capital.

The Subscription price per New Share represents a premium of approximately 15.9% to the average closing price of HK$0.0798 per Share as quoted on the Stock Exchange for the last 5 trading days including July 29, 2004.

The gross proceeds from the Placement will be approximately HK$9 million and the net proceeds of approximately HK$8.7 million will be applied for general working capital purpose.

Mr. Lawrence Mo, said, "In view of the immense business opportunities in the PRC, the Group is aggressively planning for further business expansion in the huge PRC market. Leveraging on YesMobile's strategic position in the PRC market on short message service, interactive voice portal, mobile contents and other valued added service of mobile phone business, we are confident that the Group will further benefit from its synergistic relation with YesMobile after the placement, which provides an open channel for expansion to the PRC market. Additionally, YesMobile's established market presence in the PRC and strong shareholders' support also provide substantial endeavor for our business expansion in the long run."