WAH YIK HOLD<0862> - 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.

Wah Yik Holdings Company Limited
(the "Company")
(incorporated in the Cayman Islands with limited liability)

Unconditional cash offers (the "Offers")
by
Somerley Limited
on behalf of
Far-Reaching Limited ("Far-Reaching")
to acquire all the issued shares and outstanding warrants of the Company
other than those already owned by Far-Reaching
or parties acting in concert with it

*       Copies of the Offeree Document in relation to, inter alia, the 
Offers were despatched on 14th January, 2000. Shareholders and 
Warrantholders should review the Offeree Document before taking any action 
with regard to their holdings of Shares and Warrants in the Company.

*       The statement of pro forma unaudited adjusted consolidated net 
tangible assets of the Group is set out below.

Reference is made to the joint announcement of the Company and 
Far-Reaching dated 7th December, 1999.

The board (the "Board") of the Company announces that copies of the 
offeree document of the Company dated 14th January, 2000 (the "Offeree 
Document") containing, inter alia, (i) the letter from the Board; (ii) the 
letter from the Independent Board Committee; (iii) the letter from the 
independent financial adviser, Pacific Challenge Capital Limited, in 
connection with the Offers have been despatched to the Shareholders and 
Warrantholders on 14th January, 2000. Terms used in this announcement 
shall have the same meanings as defined in the Offeree Document, unless 
the context otherwise requires.

Shareholders and Warrantholders should review the Offeree Document before 
taking any action with regard to their holdings of Shares and Warrants in 
the Company. The latest time for acceptance of the Offers is 4:00 p.m. on 
Friday, 21st January, 2000.

The Offeree Document also contains the statement of pro forma unaudited 
adjusted consolidated net tangible assets of the Group, which is 
reproduced as follows:*

                                                HK$'000

Audited consolidated net assets
of the Group as at 31st December, 1998          173,143
Less: Prepaid co-operation fee                  (9,813  )
                                                163,330

Unaudited consolidated                           16,086 
profit after taxation of the Group for the 
period ended 30th June, 1999            
Add: Amortisation of prepaid co-operation fee       465   
                                                 16,551
Unaudited consolidated 
loss after taxation of the Group for the        (10,099 )*
period from 1st July, 1999 to 
31st October, 1999        
Add: Amortisation of prepaid co-operation fee       310
        
                                                 (9,789  )
Deficit arising on the revaluation              (37,385 )
of the Group's interest in land and 
buildings as at 31st October, 1999 (Note 1)      

Pro forma unaudited adjusted consolidated       132,707
net tangible assets of the Group 
as at 31st October, 1999    

Pro forma unaudited adjusted consolidated 
net tangible assets per Share 
based on 2,000,000,000 Shares in issue (Note 2)   HK$0.066

Pro forma unaudited adjusted consolidated
 net tangible asset per Share based 
on 2,400,000,000 Shares assuming full conversion 
of the outstanding Warrants (Note 3)              HK$0.088

Notes:

1.      The valuation by an independent valuer, LCH Surveyors, was carried 
out in connection with the Offers. The valuation was conducted on an open 
market and depreciated replacement basis. The deficit arising on the 
revaluation of the Group's interest in land and buildings will be 
incorporated into the Group's financial statements for the year ended 31st 
December, 1999.

2.      The pro forma unaudited adjusted consolidated net tangible asset 
value per Share is based on 2,000,000,000 Shares in issue.

3.      As at the date hereof, there are 400,000,000 units of Warrants in 
an aggregate subscription rights of HK$78 million outstanding. Each 
Warrant entitles the registered holder thereof to subscribe HK$0.195 in 
cash for Shares at an initial subscription price of HK$0.195 per Share 
(subject to adjustment) at any time until 30th November, 2000. Assuming 
full conversion of all the outstanding Warrants, the unaudited adjusted 
consolidated net tangible assets will increase by HK$78 million (before 
expenses) to approximately HK$210,707,000. The pro forma unaudited 
adjusted consolidated net tangible asset value per Share is calculated 
based on the unaudited adjusted consolidated net tangible assets of 
HK$210,707,000 and 2,400,000,000 Shares as enlarged by the exercise of 
400,000,000 units of Warrants.

*       Included in the said figure is an exceptional loss of 
approximately HK$6.7 million in relation to loss on disposal of a 
subsidiary and a branch.

By Order of the Board
Wah Yik Holdings Company Limited
Hui Mang Mang
Chairman
Hong Kong, 14th January, 2000

The directors of the Company jointly and severally accept full 
responsibility for the accuracy of the information contained in this 
announcement and confirm, having made all reasonable inquiries, that to 
the best of their knowledge, the opinions expressed in this announcement 
have been arrived at after due and careful consideration and there are no 
other facts not contained in this announcement, the omission of which 
would make any statement in this announcement misleading.