Propose Bonus Issue of 40,000,000 new ordinary shares of par value HK$0.10 each in the capital of Giant Wireless Technology Limited

The Board of Directors of Giant Wireless Technology Limited (the "Company") is pleased to announce that the Company is proposing a bonus issue (the "Bonus Issue") of up to 40,000,000 new ordinary shares of HK$0.10 each in the capital of the Company credited as fully paid (the "Bonus Shares"). The Bonus Issue will be on the basis of one (1) Bonus Share for every ten (10) existing ordinary shares of par value HK$0.10 each in the capital of the Company (the "Shares") held by the shareholders of the Company (the "Shareholders") on a date to be determined by the Directors (the "Books Closure Date").

The Bonus Issue will be made by capitalising a sum of HK$4,000,000 from the share premium account of the Company and applying the same towards payment in full at par for the Bonus Shares to be issued. As at 27 May 2004 , the balance in the Company's share premium account was HK$99,087,000.

The Bonus Issue enables the Company to express its appreciation to the Shareholders for their support for the Company. At the same time, the Bonus Issue is also intended to augment the issued share capital base of the Company to appropriately reflect the growth and expansion of the Group's business.

The Bonus Shares, when allotted and issued, will rank pari passu in all respects with the existing Shares.

The Bonus Issue is subject to:

The Company will make an application to the SGX-ST for approval of the Bonus Issue. A circular to Shareholders setting out details of the Bonus Issue and the notice convening the SGM will be dispatched to Shareholders in due course.

Notice of the Books Closure Date for purposes of determining the Shareholders' entitlements under the Bonus Issue will be given at a later date, after all the necessary approvals have been obtained.