Proposed Acquisition Of Shares In Certain Kingsmen Affiliates (The "Acquisition")

May 19, 2004

Kingsmen Creatives Ltd. ("the Company") wishes to announce that the Board of Directors of the Company has approved the exercise of the call options, according to the principles specified in the Potential Conflicts of Interest section of the Company's prospectus, to acquire the shares of Kingsmen Nikko Ltd., Kingsmen (Korea) Limited and Kingsmen Indochina Pte Ltd from Kingsmen International Pte Ltd ("Kingsmen International").

Mr Soh Siak Poh Benedict, the Group Managing Director and Mr Simon Ong Chin Sim, the Group Executive Director are the directors and shareholders of the entire issued and paid up capital of Kingsmen International, each holding 50% of the equity interest. As such, the Acquisition will become an Interested Person Transaction under Chapter 9 of the Listing Manual.

In connection therewith, the Company has appointed an independent financial adviser, lawyers, and other professionals to advise and prepare the necessary documentation for the Acquisition. The Share Acquisition Agreement to be signed between the Company and Kingsmen International will be conditional on the approval of the independent shareholders of the Company.

Save as disclosed above, none of the directors and substantial shareholders of the Company has any interest, direct or indirect, in the Acquisition.