PRESS RELEASE

For Immediate Release

For further information, please contact:

Mr. Ricky Ma
Tomorrow International Holdings Limited	Tel: (852) 2330 1550
Ms. Prudence Lai / Ms. Peggy Chung	Tel: (852) 2528 8948 / 2533 4624
Citigate Dewe Rogerson

The following release can also be seen at http://www.irasia.com/listco/hk/tomorrow

Turnover decreased 13 % to HK$483.6 million

Loss attributable to shareholders after taxation and minority interests recorded at HK$26.5 million

Loss per share was HK6.0 cents

The Group's results were affected by the unfavourable economic condition and keen industry competition

Cost control and operating efficiency control policies were adopted by the Group to improve its operating efficiency and enhance its market competitiveness

(Hong Kong, 16 May, 1999) Tomorrow International Holdings Limited (the "Group") (HKSE: 760; NASDAQ: TIHDY US) today announced its 1998 annual results for the financial period ended 31 December, 1998.

The Group's total turnover was HK$ 483.6 million (US$62.4 million) for the year ended 31 December, 1998, representing a decrease of 13% over 1997. Loss attributable to shareholders after taxation and minority interests amounted to HK$26.5 million (US$ 3.4 million), decrease of 340% over 1997.

Loss per share for the financial period were HK 6.0 cents compared with earnings per share of HK2.5 cents in the previous year.

Mr Paul Yau, Chairman of the Group, said " Although 1998 is a difficult year for the Group due to the continuing financial crisis in Asian region and keen competition in the electronic industry, our electronic product business maintained a steady growth in turnover especially in the North American and Japanese markets. However, our profit contribution had been weakened by low profit margin."

Under the unfavourable electronic market conditions in Hong Kong and the PRC, the Group's trading and distribution business performance did not reach the management's expectation. Over the past year, the Group carried out an expansion plan to enlarge the production capacity of printed circuit boards (PCBs). Though it enjoyed a satisfactory growth in turnover, it was offset by increased capital expenditure and overhead costs.

In order to increase its operating efficiency and strengthen its market competitiveness, the Group implemented a series of measures including operating efficiency control, utilising full production capacity, tightened cost control and credit control. The Group also closed its representative offices in Beijing and Tokyo in September and December respectively in 1998 to reduce the operating costs as much as possible.

For the Y2K compliance project, the Group is carrying out an office automation program with an emphasis of the upgrade of the computer operating systems within the Group.

Mr Yau, said "Although market competition in electronic industry is fierce, the Board of Directors is very optimistic about the future as we foresee there will be a strong market growth. Through our efforts in implementing cost control policy and increasing operating efficiency, we assure our market shares can be maintained. In view of the ever changing market development and the unstable economy, the management will take a conservative approach in formulating future development plans in order to maintain a steady growth of the Group in the years ahead."

The Group is a diversified electronic enterprise, concentrating mainly on manufacturing and distribution. The Group manufactures and sells digital thermometers, digital timers, electronic clocks, car accessories and PCBs, as well as distributes electronic components and parts. It is an authorised distributor of Seiko-Epson's electronic components and parts in Hong Kong and the PRC.

TOMORROW INTERNATIONAL HOLDINGS LTD
1998 ANNUAL RESULTS SUMMARY