At the last Annual General Meeting ("AGM") held on 21 June 2005, the Company had obtained its shareholders' approval for the Company and/or its subsidiaries ("Group") to enter into recurrent related party transactions of a revenue or trading nature, from time to time, which are necessary for the day-to-day operations of the Group.

The existing mandate will lapse at the conclusion of the forthcoming AGM of the Company to be convened. Accordingly, the Board of Directors of PacificMas wishes to seek the shareholders' approval to renew the mandate for the Company and/or its subsidiaries to enter into recurrent related party transactions of a revenue or trading nature, from time to time, which are necessary for the day-to-day operations of the Group ("Proposed Mandate") at the forthcoming AGM.