SOUNDWILL HOLD<0878> - Announcement

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 
announcement.

SOUNDWILL HOLDINGS LIMITED
(Incorporated in Bermuda with limited liability)

We have noted the recent increase in price and trading volume 
of the shares of the Company and wish to state that we are not 
aware of any reasons for such increase. The Company is in 
discussions with Madam Foo Kam Chu, Grace, the controlling 
shareholder of the Company, for a possible investment in a 
company which is controlled by Madam Foo Kam Chu, Grace.

This statement is made at the request of the Stock Exchange 
of Hong Kong Limited.

We have noted the recent increase in price and trading volume 
of the shares of the Company and wish to state that we are not 
aware of any reasons for such increase.

The Company is in discussions with Madam Foo Kam Chu, Grace, 
the controlling shareholder of the Company, for a possible 
investment in a company which is controlled by Madam Foo Kam 
Chu, Grace and is involved in the production of 
telecommunications equipment in the People's Republic of China. 
No agreement has been signed.  The Company may or may not 
proceed with the investment. If the Company proceeds with the 
investment which will constitutes a connected transaction, 
appropriate disclosure will be made in accordance with the 
Listing Rules.

Save for the above-mentioned, we confirm that there are no 
other negotiations or agreements relating to intended 
acquisitions or realisations which are discloseable under 
paragraph 3 of the Listing Agreement, neither is the Board 
aware of any other matter discloseable under the general 
obligation imposed by paragraph 2 of the Listing Agreement, 
which is or may be of a price-sensitive nature.

Shareholders and investors of the Company are advised to 
exercise caution when dealing in the securities in the Company.

Made by the order of the Board of Soundwill Holdings Limited 
the directors of which (save for Mr Dong Jiufeng, Mr Kwong Che 
Keung, Gordon, Mr Wong Tak Leung, Charles and Mr Yuen Hing Man 
who cannot be reached prior to the issue of this announcement) 
individually and jointly accept responsibility for the 
accuracy of this statement.

Hong Kong, 7 March 2000