09:16     DIGITAL CHINA<00861> - Announcement (4)                             

    ``connected persons''   has the meaning ascribed to it under the          
    Listing Rules;                                                            
                                                                              
    ``DGT''   means DGT Information Systems Limited, a company                
    incorporated under the laws of Hong Kong with limited liability on        
    13 October 2003 and is held as to 55% indirectly by the Company,          
    25% by GE and 20% by TIS;                                                 
                                                                              
    ``DGT Group''   means DGT and its subsidiaries;                           
                                                                              
    ``Directors''   means the directors of the Company;                       
                                                                              
    ``GE''   means GE Capital Mauritius Equity Investment, a company          
    incorporated under the laws of Mauritius, which is a member of the        
    global General Electric group and a connected person of the Company       
    by virtue only of its 25% holding in the share capital of DGT;            
                                                                              
    ``GE Agreement''   means the master agreement dated 31 December           
    2004 and entered into between DGT and GE for the purpose of               
    regulating the GE Transactions;                                           
                                                                              
    ``GE Transactions''   means transactions relating to the provision        
    of software development, applications outsourcing, IT support and         
    other related professional services by members of the DGT Group to        
    GE and/or its associates;                                                 
                                                                              
    ``Group''   means the Company and its subsidiaries;                       
                                                                              
    ``HK$''   means Hong Kong dollars, the lawful currency of Hong            
    Kong;                                                                     
                                                                              
    ``Hong Kong''   means the Hong Kong Special Administrative Region         
    of The People's Republic of China;                                        
                                                                              
    ``Investment Agreement''   means the investment agreement dated 24        
    September 2003 entered into between the Company, Talent Gain              
    Developments Limited (an indirect wholly owned subsidiary of the          
    Company which holds directly 55% shareholding interest in DGT), GE,       
    GE Capital International Services (a company which is under the same      
    group as GE) and TIS pursuant to which the parties established DGT;       
                                                                              
    ``IT''   means information technology;                                    
                                                                              
    ``Listing Rules''   means the Rules Governing the Listing of              
    Securities on The Stock Exchange of Hong Kong Limited;                    
                                                                              
    ``PRC''   means The People's Republic of China;                           
                                                                              
    ``Stock Exchange''   means The Stock Exchange of Hong Kong Limited;       
                                                                              
    ``TIS''   means TIS Inc., a company incorporated under the laws of        
    Japan, the securities of which are listed on the Tokyo Stock              
    Exchange, Inc. and Osaka Securities Exchange Co., Ltd. and a              
    connected person of the Company by virtue only of its 20% holding         
    in the share capital of DGT;                                              
                                                                              
    ``TIS Agreement''   means the master agreement dated 31 December          
    2004 and entered into between DGT and TIS for the purpose of              
    regulating the TIS Transactions;                                          
                                                                              
    ``TIS Transactions''   means transactions relating to the                 
    provision of software development, applications outsourcing, IT           
    support and other related professional services by members of the         
    DGT Group to TIS and/or its associates; and                               
                                                                              
    ``%''   means per cent.                                                   
                                                                              
    By order of the Board                                                     
    LI Qin                                                                    
    Chairman                                                                  
                                                                              
    Hong Kong, 10 January 2005                                                
                                                                              
    At the date of this announcement, the Board comprises five executive      
    Directors, namely Mr. LI Qin (Chairman), Mr. GUO Wei (Vice Chairman,      
    President and Chief Executive Officer), Mr. ZENG Maochao, Mr. LIN         
    Yang and Mr. HUA Zhinian; one non-executive Director, namely Mr.          
    William O. GRABE; and three independent non-executive Directors,          
    namely Mr. LEUNG Pak To, Francis, Professor WU Jinglian and Mr. HU        
    Zhao Guang.                                                               
                                                                              
    website: www.digitalchina.com.hk                                          
                                                                              
    (* For identification purpose only)