KEE SHING (HOLDINGS) LIMITED (Incorporated in Hong Kong with limited liability) (Stock Code: 174)

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1 The Stock Exchange of Hong Kong Limited takes no responsibility for the contents of this announcement, makes no representation as to its accuracy or completeness and expressly disclaims any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcements. KEE SHING (HOLDINGS) LIMITED (Incorporated in Hong Kong with limited liability) (Stock Code: 174) CONTINUING CONNECTED TRANSACTION GUARANTEE The Directors wish to announce that on 19th April 2006, the Company issued the Guarantee pursuant to which the Company absolutely and unconditionally guarantees the punctual payment and performance of obligations by KSIP(Singapore) under the Stock Consignment Agreement. KSIP(Singapore) is a non-wholly owned subsidiary of the Company and is owned as to 51% by the Company and as to 41% by Mr. Herman Santoso (a director of KSIP(Singapore)) and as to 8% by Mr. Kee Moh Lian (a director of KSIP(Singapore)). By virtue of his shareholding interest and directorship in KSIP(Singapore), Mr. Herman Santoso is a connected person of the Company. As Mr. Herman Santoso holds 30% or more of the shareholding interest in KSIP(Singpaore), KSIP(Singapore) is an associate of Mr. Herman Santoso and hence a connected person of the Company. The Guarantee therefore constitutes a continuous connected transaction of the Company under Chapter 14A of the Listing Rules. As the Guarantee in on normal commercial terms and each of the percentage ratios (other than the profits ratio) calculated with reference to the Annual Cap is on an annual basis less than 2.5%, the Guarantee constitutes a continuous connected transaction under Chapter 14A.34(1) of the Listing Rules and hence is only subject to the reporting and announcement requirements and is exempted from the independent shareholders approval requirement applicable to continuing connected transactions under Chapter 14A of the Listing Rules. Details of the Guarantee will be disclosed in the Company s annual report in compliance with the relevant requirements of the Listing Rules. 1. INTRODUCTION The Directors wish to announce that on 19th April 2006, the Company issued the Guarantee pursuant to which the Company absolutely and unconditionally guarantees the punctual payment and performance of obligations by KSIP(Singapore) under the Stock Consignment Agreement. 2 THE GUARANTEE 2.1 Date: 19th April Guarantor: the Company 2.3 Term: Thirty-six calendar months from the date of execution of the Guarantee on 19th April 2006.

2 2.4 Guarantee of the Company: The Company has absolutely and unconditionally guarantees to Johnson Matthey the punctual payment and performance of each and every obligation of KSIP(Singapore) under the Stock Consignment Agreement. 2.5 Maximum liability of the Company: The maximum liability of the Company in respect of the its guaranteed obligations under the Guarantee shall be limited to USD450,000 (equivalent to approximately HKD3,500,000). Johnson Matthey shall be entitled to payment from the Company all expenses, including legal expenses on a solicitor and own client basis, incurred by Johnson Matthey in enforcing its rights under the Guarantee. 3. STOCK CONSIGNMENT AGREEMENT 3.1 Date: 19th April Parties: (a) Johnson Matthey (as consignor), a party not connected with the directors, chief executive or substantial shareholders (as defined in the Listing Rules) of the Company or its subsidiaries or any of their associates. (b) KSIP(Singapore) (as consignee), a non-wholly owned subsidiary of the Company 3.3 Term: The Stock Consignment Agreement shall commence with effect from the date of the Stock Consignment Agreement and shall remain in force indefinitely unless terminated by either party to the Stock Consignment Agreement in accordance with the Stock Consignment Agreement. 3.4 Consignment: Johnson Matthey shall consign GPC to KSIP(Singapore) in accordance with the terms and conditions of the Stock Consignment Agreement. 3.5 Consideration: Each delivery of GPC shall be priced by KSIP(Singapore) with reference to the fine metal content (The fine metal value of Stock priced shall be the market price at the time of pricing quoted by Johnson Matthey in US Dollars) and the manufacturing element (The manufacturing cost per kilogramme of GPC drawn down under the Stock Consignment Agreement shall be agreed upon by Johnson Matthey and KSIP(Singapore) from time to time). 3.6 Guarantee The Stock Consignment Agreement provides that from the Johnson Matthey shall not be obliged to make Company: any delivery of GPC until Johnson Matthey has received the Guarantee.

3 4. REASONS FOR AND BENEFITS OF THE CONTINUING CONNECTED TRANSACTION The consignment of GPC by Johnson Matthey to KSIP(Singapore) is vital to the trading business of KSIP(Singapore). With the Stock Consignment Agreement, KSIP(Singapore) is able to reduce the cost pressure on stockpiling and provide prompt delivery of its products to its customers. The Directors consider that by providing the Guarantee, KSIP(Singapore) can secure a stable supply of GPC from Johnson Matthey. As the Company owns over 50% of the shareholding interest in KSIP(Singapore) and hence has control over KSIP(Singapore), no counter indemnity is currently provided to the Company by the two minority shareholders of KSIP(Singapore) in respect of the Guarantee. The Directors (including the independent non-executive Directors) are of the view that the Guarantee is on normal commercial terms and terms of the Guarantee are fair and reasonable and in the interests of the Company and its shareholders as a whole. 5. ANNUAL CAP FOR THE GUARANTEE For the three years ended 31st December 2003, 2004 and 2005 purchase of GPC made by KSIP(Singapore) from Johnson Matthey amounted to approximately HK$50.8 million, HK$69.7 million and HK$45.9 million respectively. The Directors propose to set the amount of USD450,000 (equivalent to approximately HKD3,500,000) as the annual cap amount for the Guarantee for each of the years ending 31st December, 2006, 2007 and 2008 (the Annual Cap ). The Annual Cap represents the maximum liability of the Company in respect of its guaranteed obligations under the Guranatee which in turn has been determined by reference to the Group s purchase of GPC for the three years ended 31st December 2005 and the Directors view on the market conditions of GPC in the forthcoming years, taking into account a buffer to cater for any increase in the demand for, and the unit price of, GPC. 6. GENERAL The principal activities of the Group are the trading of electroplating products, stainless steel, paint and coating chemicals, properties investment and securities investment. KSIP(Singapore) is incorporated in Singapore and its principal business activity is the trading of electroplating products such as Nickel and GPC. Johnson Matthey is a supplier of GPC of the Group. Johnson Matthey PLC, a company whose shares are listed on the London Stock Exchange, is the parent company of Johnson Matthey. To the knowledge of the Directors, both Johnson Matthey PLC and Johnson Matthey are not connected with the directors, chief executive or substantial shareholders (as defined in the Listing Rules) of the Company or its subsidiaries or any of their associates.

4 KSIP(Singapore) is a non-wholly owned subsidiary of the Company and is owned as to 51% by the Company and as to 41% by Mr. Herman Santoso (a director of KSIP(Singapore)) and 8% by Mr. Kee Moh Lian (a director of KSIP(Singapore)). By virtue of his shareholding interest and directorship in KSIP(Singapore), Mr. Herman Santoso is a connected person of the Company. As Mr. Herman Santoso holds 30% or more of the shareholding interest in KSIP(Singpaore), KSIP(Singapore) is an associate of Mr. Herman Santoso and hence a connected person of the Company. The Guarantee therefore constitutes a continuous connected transaction of the Company under Chapter 14A of the Listing Rules. As the Guarantee in on normal commercial terms and each of the percentage ratios (other than the profits ratio) calculated with reference to the Annual Cap is on an annual basis less than 2.5%, the Guarantee constitutes an continuous connected transaction under Chapter 14A.34(1) of the Listing Rules and hence is only subject to the reporting and announcement requirements and is exempted from the independent shareholders approval requirement applicable to continuing connected transactions under Chapter 14A of the Listing Rules. 7. DEFINITIONS associate(s) board Company connected person(s) Directors GPC Group Guarantee Hong Kong Johnson Matthey Johnson Matthey PLC as such term is defined in the Listing Rules; the board of directors of the Company; Kee Shing (Holdings) Limited, a company incorporated in Hong Kong whose shares are listed on the Stock Exchange; as such term is defined in the Listing Rules; the directors of the company; Gold Potassium Cyanide; the Company and its subsidiaries; the guarantee dated 19th April, 2006 executed by the Company pursuant to which the Company absolutely and unconditionly guarantees the punctual payment and performance of obligations by KSIP(Singapore) under the Stock Consignment Agreement; The Hong Kong Special Administrative Region of the People s Republic of China; Johnson Matthey Hong Kong Limited, a company incorporated in Hong Kong, an independent third party; a company incorporated in United Kingdom and listed on the London Stock Exchange, is a parent company of Johnson Matthey Hong Kong Limited, an independent third party;

5 KSIP(Singapore) Listing Rules Stock Consignment Agreement Stock Exchange HK$ US$ % Per cent. KSIP(Singapore) Pte. Limited, a company incorporated in Singapore, a non-wholly owned subsidiary of the Company; the Rules Governing the Listing of Securities on the Stock Exchange; the Stock Consigment Agreement dated 19th April, 2006 entered into between KSIP(Singapore) and Johnson Matthey relating to the consignment of GPC; The Stock Exchange of Hong Kong Limited Hong Kong dollars, the lawful currency of Hong Kong; United States dollars, the lawful currecy of the United States; and By order of the Board Kee Shing (Holdings) Limited Leung Shu Wing Chairman Hong Kong, 19th April 2006 As at the date hereof, the Board consists of the following Directors: Executive Directors: Non-Executive Director: Leung Shu Wing Yuen Tin Fan Leung Miu King Wong Chi Kin Independent non-executive directors: Wong Choi Ying Wong Kong Chi Lai Chung Wing, Robert Chan Wing Lee