KING PACIFIC<0072> - 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.

KING PACIFIC INTERNATIONAL HOLDINGS LIMITED
(Incorporated under the laws of Bermuda with limited liability)

Completion of the tranche 1 debentures of the proposed issue 
of up to US$10,000,000 3% convertible debentures due 2002

With reference to the announcement of the Company dated 29th 
September, 1999 in relation to a conditional subscription 
agreement entered into between Mountwood LLC and the Company 
regarding the proposed issue by the Company of up to US$10,000,000 
3% convertible debentures due 2002, the board of directors (the 
"Board") of King Pacific International Holdings Limited (the 
"Company") wishes to announce that the subscription of the Tranche 
1 Debentures was completed on 15th October, 1999.

The Board wishes to refer the Company's announcement (the 
"Announcement") dated 29th September, 1999 in relation to a 
conditional subscription agreement between Mountwood LLC (the 
"Subscriber") and the Company regarding the proposed issue by the 
Company of up to US$10,000,000 3% convertible debentures due 2002.  
Terms defined in the Announcement shall have the same meanings 
when used herein.

The Board announces that the conditions to the subscription of 
the Tranche 1 Debentures have been fulfilled on 12th October, 1999 
and the subscription of the Tranche 1 Debentures was completed 
on 15th October, 1999.  The net proceeds of the subscription of 
the Tranche 1 Debentures are estimated to be approximately 
HK$36,200,000. 

The Tranche 1 Debenture and the Tranche 2 Debentures may, subject 
to the terms of the Subscription Agreement, be converted into 
Shares from the date of the issue of the relevant Debentures up 
to 4:00 p.m. (Hong Kong time) the third anniversary of the Tranche 
1 Completion Date.

The conversion price for the Tranche 1 Debenture has not been fixed. 
The conversion price (the "Conversion Price") for the Debentures 
is the lesser of:

(a)     125% of the closing bid price per Share quoted on the Stock 
Exchange on the trading day immediately before the completion date 
for the issue of the relevant Debenture; or

(b)     93% of the average of the three lowest closing bid prices per 
Share quoted on the Stock Exchange over the 30-calendar day period 
immediately prior to the date of the relevant conversion notice.

For reference purpose, based on the closing bid price per Share 
of  HK$0.87 quoted on the Stock Exchange on 14th October, 1999 
being the trading day immediately before the completion date for 
the Tranche 1 Debentures, the Conversion price based on the formula 
set out in paragraph (a) above shall be HK$1.0875 (125% of HK$0.87) 
and approximately 35,770,115 Shares will be issued upon full 
conversion of the Tranche 1 Debentures. However, the actual 
conversion price shall be the lesser of (a) and (b) as stated above.

Such Shares  represent approximately 4.3% of the Company's 
existing issued share capital and 4.1% of its enlarged issued share 
capital.  Upon completion, the Subscriber has the Warrants 
carrying rights to subscribe US$750,000 for Shares.  The exercise 
price for the Warrants is approximately HK$1.0875 (subject to 
adjustment) which represents 125% of the closing bid price 
mentioned above.  Upon full exercise of the subscription rights 
attaching to such Warrants, approximately 5,365,517 Shares will 
be issued, representing approximately 0.6% of the Company's 
existing issued share capital and 0.6% of its enlarged issued share 
capital.

Subject to the condition of the subscription of the Tranche 2 
Debenture being fulfilled (or waived by the Subscriber) the 
Company may, at any time during the period commencing from the 
date falling 90 days after 15th October, 1999 and ending on the 
date falling 15 months after 15th October, 1999 require the 
Subscriber to subscribe for all or part of the Tranche 2 Debenture.

Further announcement will be made by the Company as soon as 
possible regarding the issue of the Tranche 2 Debentures, the 
relevant Warrants or the early redemption of the relevant 
Debentures.

By order of the board
King Pacific International Holdings Limited
Cheng Chao Ming
Managing Director

Hong Kong, 15th October, 1999