Man Sang Holdings, Inc. Issues A Special Chairman's Letter to All Shareholders

Business Wire, March 7, 2005

NEW YORK -- Man Sang Holdings, Inc. (OTC Bulletin Board: MSHI - News) Man Sang, founded in the early 1980's, is one of the world's largest purchasers and processors of Chinese cultured and freshwater pearls. Man Sang Group is principally engaged in the purchasing, processing, assembling, merchandising and wholesale distribution of pearls, pearl jewelry products and jewelry products. In addition, the Company owns and operates a commercial real estate complex, the Man Sang Industrial City. Today, Man Sang announced that it has issued a letter in an effort to update MSHI investors on the current status of the Company. The text from the letter follows:

Dear Shareholders,

It is not often that I send out a letter about a single International Jewelry Show. But after the Hong Kong International Jewelry Show concluded March 4 - it is the best of the time to update you our Company's story. What we have been doing and how could we accelerate our growth, more vital, to build value for you.

Let me start by reviewing some recent news. Our net sales for the nine months ended December 31, 2004 increased 15.0% to US$40.5 million as compared to the same period in 2003. Gross profit increased 27.3% to US$11.3 million. Net income was US$2.9 million.

The Hong Kong International Jewelry Show 2005

The booth of Man Sang, as usual was one of the largest booths in the jewelry show. Arcadia, our jewelry subsidiary, added plenty of new orders to bolster an already bright outlook for the first quarter of 2005. Our key performer on the pearl side of the business continues to be South Sea pearls, including white and gold South Sea pearls and Tahitian Black pearls. We see freshwater pearls as coming up as Chinese pearl farms produce higher quality and bigger diameter freshwater pearls. The buying from US, Asia, and Europe are quite even. We conservatively are expecting a single digit growth for the 2005 Hong Kong International Jewelry Show compare with 2004's.

What's most encouraging is that quite a number of new customers have come up with us at the jewelry show. They are potential buyers from the Middle East, South America as well as Europe. Not only have they placed orders of pearls and jewelry at the show, they are also working with us for further quotations and more potential orders to come. Some of them are large jewelry players in their respective markets and are referred to us by our existing customers. If we succeed in having them place orders with us on a continuous basis, we are optimistic that they will be another driving force to boost our sales for the rest of the year.

Tapping China's Potential

China's truly potential is in its jewelry market - consumer market, mega jewelry marketplace, jewelry manufacturing, branding and others. We are well equipped with knowledge and reserves as China's GNP grows. Nevertheless, in any strategic move, I strive to be both consistent and cautious in our reserves and gearing. Shareholders' interests, as always, are being placed in the first priority.

Increase our shareholders' value

Since we are hopeful that 2005 will represent a great leap forward for us, we want to have Wall Street recognizes our growth potential and begin to value us based on our actual performance. Moving into more Regulated Exchanges like AMEX or NASDAQ is always part of our plan to increase shareholders' value and it will be at the top of our "to do" list. On the same line, in order to ensure our message is effectively communicated, we have engaged the investor relations services of The Altman Group (www.altmangroup.com). Its clients include doing work for The Taiwan Greater China Fund, The Asia Pacific Fund, China Strategic, The Taiwan Fund project work, and China Enterprises. With The Altman Group, we will increase our exposure to the investment community.

Let's make the Year of the Rooster a productive one.

We always put our top priority on creating shareholders' value. In the Year of Rooster, we will focus on producing highly gratifying and good results.

Sincerely,
   Ricky Cheng
   Chairman of the Board
   Man Sang Holdings, Inc.
   Safe Harbor Statement

This press release contains forward-looking statements that involve risks, uncertainties and assumptions that, if they never materialize or if they prove incorrect, could cause the Company's results to differ materially from those expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including any projections of earnings, revenue, or other financial items, any statements of the plans, strategies, and objectives of management for future operations, any statements concerning proposed new products, services or developments, any statements regarding future economic conditions or performance, statements of belief and any statements of assumptions underlying any of the foregoing. These statements are based on expectations as of the date of this press release. Actual results may differ materially from those projected because of a number of risks and uncertainties, including those detailed from time to time in the Company's reports filed with the Securities and Exchange Commission. The Company assumes no obligations and does not intend to update these forward-looking statements.