09:08     CHINA SCI-TECH<00985> - 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.                   
                                                                              
    CHINA SCI-TECH HOLDINGS LIMITED                                           
    (Incorporated in the Cayman Islands with limited liability)               
                                                                              
    ANNOUNCEMENT                                                              
                                                                              
    The Company received payments from Mr. Chiu Tao ("Mr. Chiu"), the         
    Chairman of the Company pursuant to a deed of undertaking and indemnity   
    dated 26th July 1999 ("Deed") given by Mr. Chiu to indemnify the          
    Company against all losses, liabilities, damages, costs and expenses      
    (save legal costs and expenses only) suffered or incurred by the          
    Company as a result of or in connection with the Claim (as hereinafter    
    defined).                                                                 
                                                                              
    The Company is in the course of negotiating with the Third Party (as      
    hereinafter defined) to withdraw its appeal to the Court of Appeal of     
    the High Court against the Judgement (as hereinafter defined) following   
    receipt of the said payments from Mr. Chiu pursuant to the Deed.          
                                                                              
    The directors of the Company refer to the interim report of the Company   
    dated 30th December 2002 for the six months ended 30th September 2002     
    ("Interim Report") in which an explanatory paragraph headed               
    "Fundamental uncertainty" ("Paragraph") was included in the auditors'     
    independent review report.                                                
                                                                              
    The Company is pleased to announce as follows:                            
                                                                              
    1.  Payments ("Payments") have been received from Mr. Chiu pursuant to    
    the Deed referred in the Paragraph.                                       
                                                                              
    2.  The Payments have fully covered the judgement debt and all            
    interests ordered by the Court in a judgement ("Judgement") on 10th       
    April 2002 in favour of a third party ("Third Party") on its claim        
    ("Claim") against the Company. Details of the Judgement has been          
    disclosed in the interim report.                                          
                                                                              
    3.  The Deed however does not extend to cover legal costs and expenses    
    incurred by the Company in relation to the Claim. The legal costs and     
    expenses awarded by the Court in the Judgement in favour of the Third     
    Party are in the course of taxation by the Court. The directors do not    
    consider such legal costs and expenses to be material to the financial    
    position of the Company.                                                  
                                                                              
    4.  The Company is in the course of negotiating with the Third Party to   
    withdraw its appeal against the Judgement to the Court of Appeal of       
    High Court. The Company will make further announcement on the outcome     
    of the negotiation if it considers it appropriate.                        
                                                                              
    5.  The financial position of the Company would not be adversely          
    affected by the proposed withdrawal of the appeal against the Judgement   
    as its position is covered by the Payments (save legal costs and          
    expenses as aforesaid).                                                   
                                                                              
     By order of the Board                                                    
    Kwan Kam Hung, Jimmy                                                      
    Director                                                                  
                                                                              
    Hong Kong, 23rd January, 2003