10:19     CAPITAL STRAT<00497>CAPITAL ESTATE<00193>-JA&<00193>Resume11        

                                    investment-                               
                                    related                                   
                                    projects                                  
                                                                              
    Shareholders should note that completion of each of the Top-Up            
    Subscription Agreement and the CB Placing Agreement are conditional.      
    Shareholders and potential investors should exercise caution when         
    dealing in the Shares.                                                    
                                                                              
    RESUMPTION OF TRADING                                                     
                                                                              
    At the request of the Company, trading in Shares on the Stock Exchange    
    was suspended from 9:30 a.m. on Friday, 31 December 2004 pending the      
    release of this announcement. Application has been made by the Company    
    to the Stock Exchange for the resumption of trading in Shares on the      
    Stock Exchange with effect from 9:30 a.m. on Thursday, 6 January 2005.    
                                                                              
    TERMS AND DEFINITION                                                      
                                                                              
    "associate"        has the meaning ascribed to it in the Listing Rules    
                                                                              
    "Board"        the board of directors of the Company                      
                                                                              
    "CB Placing"        the conditional placing of the Convertible Notes      
    pursuant to the CB Placing Agreement                                      
                                                                              
    "CB Placing Agreement"        the conditional placing agreement dated     
    5 January 2005 and entered into between the Company and the Placing       
    Agent in relation to the CB Placing                                       
                                                                              
    "Capital Strategic"        Capital Strategic Investment Limited, a        
    company incorporated in Bermuda with limited liability and the shares     
    of which are listed on the main board of the Stock Exchange               
                                                                              
    "Code"        Code on Takeovers and Mergers                               
                                                                              
    "Company"        Capital Estate Limited, a company incorporated in        
    Hong Kong with limited liability and the Shares of which are listed on    
    the main board of the Stock Exchange                                      
                                                                              
    "Conversion Shares"        the new Shares to be issued by the Company     
    upon the exercise of the conversion rights attaching to the               
    Convertible Notes by the holders thereof                                  
                                                                              
    "Convertible Notes"        the convertible notes to be issued by the      
    Company in the aggregate principal amount of HK$36.4 million and each     
    being a "Convertible Note"                                                
                                                                              
    "Director(s)"        director(s) of the Company                           
                                                                              
    "Disposal"        the disposal of the Placing Shares to the Placees in    
    respect of the Placing                                                    
                                                                              
    "EGM"        an extraordinary general meeting of the Company to be        
    convened to approve, amongst other things, the issue of the               
    Convertible Notes and the refreshment of general mandate or any           
    adjustment thereof                                                        
                                                                              
    "Group"        the Company and its subsidiaries                           
                                                                              
    "Hong Kong"        Hong Kong Special Administrative Region of the         
    People's Republic of China                                                
                                                                              
    "Offers"        the Share Offer and the Option Offer which has been       
    announced on 15 November, 3 December, 21 December, 22 December and 30     
    December 2004 issued jointly by the Offeror and Capital Strategic         
                                                                              
    "Offeror"        Earnest Equity Limited, a company incorporated under     
    the laws of the British Virgin Islands, is wholly owned by Digisino       
    Assets Limited in its capacity as the sole trustee and for the benefit