10:14     CAPITAL STRAT<00497> - Announcement (2)                             

    capital of the Company (the "Purchase"). Following the Purchase, the      
    Offeror and parties acting in concert are interested in approximately     
    42.49% in aggregate of the existing issued share capital of the           
    Company. Taking into account the acceptance in respect of 20,000          
    Shares under the Offers, the Offeror and parties acting in concert        
    with it would have been interested in 162,955,250 Shares, representing    
    approximately 42.50% of the existing issued share capital of the          
    Company. Save for the Purchase, the Offeror and parties acting in         
    concert with it have not dealt in the Shares during the offer opening     
    period in relation to of the Offers. Since the Offers did not result      
    in the Offeror and parties acting in concert with it having more than     
    50% of the voting rights of the Company, the Offers did not become        
    unconditional and the Offers lapsed at 4:00 p.m. on 21 January 2005.      
                                                                              
    As the Offers have lapsed, the Offeror will, as soon as possible and      
    in any event within 10 days from the date hereof, post the share          
    certificate(s) (if any) or the relevant Option certificate(s) (if any)    
    lodged with the acceptance form(s) to the accepting Shareholders by       
    ordinary post at their own risk.                                          
                                                                              
    For and on behalf of        By Order of the Board                         
    Earnest Equity Limited      Capital Strategic Investment Limited          
    Chung Cho Yee, Mico         Choo Yeow Ming                                
    Sole Director               Executive Chairman                            
                                                                              
    Hong Kong, 21 January 2005                                                
                                                                              
    As at the date of this announcement, Mr. Choo Yeow Ming and Ms. Ma Wai    
    Man, Catherine are the executive Directors, Mr. Chung Cho Yee, Mico is    
    the non-executive Director and Messrs. Liu Yeau-Hwan, Pete, Wong Sin      
    Just, Lam Lee G. and Cheng Yuk Wo are the independent non-executive       
    Directors.                                                                
                                                                              
    All of the directors of the Company jointly and severally accept full     
    responsibility for the accuracy of the information contained in this      
    announcement relating to the Company and confirm, having made all         
    reasonable enquiries, that to the best of their knowledge, opinions       
    expressed by them in this announcement have been arrived at after due     
    and careful consideration and there are no other facts not contained      
    in this announcement, the omission of which would make any such           
    statement in this announcement misleading.                                
                                                                              
    The sole director of the Offeror accepts full responsibility for the      
    accuracy of the information contained in this announcement relating to    
    the Offeror and confirm, having made all reasonable enquiries, that to    
    the best of his knowledge, opinions expressed by him in this              
    announcement have been arrived at after due and careful consideration     
    and there are no other facts not contained in this announcement, the      
    omission of which would make any such statement in this announcement      
    misleading.