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 in Bermuda with limited liability)

ANNOUNCEMENT

The Company has been in discussion with a U.S. investor for a possible 
sale of the entire issued share capital of Ocean Essence Holdings 
Limited which is a wholly owned subsidiary of the Company holding 
the Company's 90% interest in the Wuhan Company. The proposed 
consideration for the disposal is an either issue of shares of Z.com 
to the Company, or partly by an issue of shares of Z.com and partly 
by cash.

The Company has appointed Mr. Chen Vee Yong, Frederick and Mr. Hui 
Yat On, Kelvin as executive directors of the Company, while Mr. 
Chuang Shih Ping was removed as an independent non-executive 
director of the Company.

The Board has noted the recent increase in price and trading volume 
of the shares of the Company on 17th February, 2000. Save as announced 
herein, the Board is not aware of any matter that might have resulted 
in the increase.

Recent increase in price and trading volume of shares

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

The Board has noted the significant recent increase in price and 
trading volume of the shares of the Company on 17th February, 2000.

POSSIBLE DISPOSAL OF WUHAN OCEAN ESSENCE WATER FACTORY COMPANY 
LIMITED (``WUHAN COMPANY'')

The Company has been in discussion with a U.S. investor for a possible 
sale of the entire issued share capital of Ocean Essence Holdings 
Limited which is a wholly owned subsidiary of the Company holding 
the Company's 90% interest in the Wuhan Company. The proposed 
consideration for the disposal shall be satisfied either by an issue 
of shares of Z.com to the Company, or partly by an issue of shares 
of Z.com and partly by cash. Z.com is a company incorporated in the 
U.S..

A preliminary non binding letter of intent has been executed on 11th 
February, 2000 in respect of this possible transaction, and the 
Company will perform due diligence on the U.S. investor to determine 
if this transaction should proceed.

The U.S. Investor, has investments in various companies which are 
principally engaged in telecommunication, internet security and 
logistic solutions in the U.S. and U.K. The U.S. Investor has 
recently acquired through Z.com a subdivision from a 
telecommunication company in the U.S. Z.com is now principally 
engaged in the telecom business in the U.S.

It is uncertain at this time as to whether the transaction is 
notifiable under the Rules Governing the Listing of Securities on 
The Stock Exchange of Hong Kong Limited. Shareholders should be aware 
that this transaction may or may not proceed. Shareholders and 
potential investors should take caution when dealing in the 
securities of the Company.

APPOINTMENT AND REMOVAL OF DIRECTOR(S)

At a meeting of the Board on 11th February, 2000, Mr. Chen Vee Yong, 
Frederick and Mr. Hui Yat On, Kelvin  were appointed as executive 
directors of the Company. Mr. Cheng Chao Ming, Jenson, Mr. Xiong 
Pingbo, Paul,  Mr. Cheung Kung Tai, Ms. Cheung Lik Ping, Mr. Zeng 
Xiang Zhi and Mr. Ching Kwok Leung voted in favour of the resolution 
approving this appointment while Mr. Cheung Yiu Wing and Mr. Cheung 
Wing Keung, Samuel  voted against the resolution.

At the same meeting, Mr. Chuang Shih Ping was removed as an 
independent non-executive director of the Company in accordance with 
the Company's bye-laws on the basis of his absence from meeting of 
the board of directors during a continuous period of six months 
without special leave of absence from the Board. Mr. Cheng Chao Ming, 
Jenson, Mr. Xiong Pingbo, Paul, Mr. Cheung Kung Tai, Ms. Cheung Lik 
Ping, Mr. Zeng Xiang Zhi and Mr. Ching Kwok Leung voted in favour 
of the resolution approving this removal while Mr. Cheung Wing Keung, 
Samuel abstained from voting on the resolution. At the time this 
resolution was passed, Mr. Cheung Yiu Wing had already left the 
meeting and therefore did not cast his vote on this resolution.

Mr. Chuang Shih Ping, Mr. Lee Sheung Wah, James and Mr. Steven Kwan 
were absent from the meeting.

DIRECTORS DEALINGS

As far as the Board is aware, none of the directors have purchased 
or sold shares of the Company today, and none of the directors' shares 
of the Company which have been pledged have been sold in the market 
today. This statement does not apply to Mr. Cheung Wing Keung, Samuel, 
Mr. Lee Sheung Wah, James and Mr. Steven Kwan who were not contactable 
for clarification prior to the time of printing.

OTHER DISCLOSEABLE INFORMATION

With regards to a number of issues raised in the announcement of the 
Company dated 10th February, 2000, a Board meeting will be held on 
21st February, 2000 to address those issues. The Company will make 
further announcements to update shareholders with further 
announcement on and when necessary.

APPROVAL OF THIS ANNOUNCEMENT

The publication of this announcement has been approved by Ms. Cheung 
Lik Ping, Mr. Cheung Kung Tai, Mr. Cheng Chao Ming, Jenson, Mr. Zeng 
Xiang Zhi, Mr. Ching Kwok Leung, Mr. Xiong Pingbo, Paul, Mr. Chen 
Vee Yong, Frederick and Mr. Hui Yat On, Kelvin. Each of the directors 
of the Company who approved this announcement take responsibility 
for the accuracy of this announcement.

The Board confirms that other than as disclosed above, there are no 
negotiation 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 matters discloseable 
under the general obligation imposed by paragraph 2 of the Listing 
Agreement, which is or may be of a price-sensitive nature.

Made by order of the board 
Xiong Pingbo, Paul 
Director

Hong Kong, 17th February, 2000