10:27     CATIC SHENZHEN<00161> - Announcement (10)                           

    incorporated in the PRC                                                   
                                                                              
    "Legal Person Share(s)" share(s) not publicly                             
    traded at the stock exchanges but permitted to be                         
    transferred by private arrangement or court order,                        
    according to the relevant securities regulations of                       
    the PRC                                                                   
                                                                              
    "Listing Rules" the Rules Governing the Listing of                        
    Securities on the Stock Exchange                                          
                                                                              
    "Nanguang"      Shenzhen Nan-guang (Group) PLC (*),                       
    a joint stock limited company                                             
    incorporated in the PRC with its A-shares listed on                       
    the Shenzhen Stock Exchange                                               
                                                                              
    "Nanguang Shares"       Nanguang Shares Portion I,                        
    Nanguang Shares Portion II, Nanguang Shares Portion                       
    III and Nanguang Shares Portion IV collectively                           
                                                                              
    "Nanguang Shares Portion I"     the 14,300,000 Legal                      
    Person Shares free from encumbrance, representing                         
    10.26% in the issued share capital of Nanguang to be                      
    transferred pursuant to the Share Transfer Agreement                      
    I                                                                         
                                                                              
    "Nanguang Shares Portion II"    the 930,600 Legal                         
    Person Shares free from encumbrance, representing                         
    0.67% in the issued share capital of Nanguang to be                       
    transferred pursuant to the Share Transfer Agreement                      
    II                                                                        
                                                                              
    "Nanguang Shares Portion III"   the 715,000 Legal                         
    Person Shares free from encumbrance, representing                         
    0.51% in the issued share capital of Nanguang to be                       
    transferred pursuant to the Share Transfer Agreement                      
    III                                                                       
                                                                              
    "Nanguang Shares Portion IV"    the 858,000 Legal                         
    Person Shares free from encumbrance, representing                         
    0.62% in the issued share capital of Nanguang to be                       
    transferred pursuant to the Share Transfer Agreement                      
    IV                                                                        
                                                                              
    "New Era"       China New Era Group Corporation (*),                      
    a company incorporated in the PRC                                         
    under the supervision of the State Assets                                 
    Administration authority                                                  
                                                                              
    "PRC"   the People's Republic of China                                    
                                                                              
    "RMB"   Renminbi, the lawful currency of the PRC                          
                                                                              
    "Share Transfer Agreements "    Share Transfer                            
    Agreement I, Share Transfer Agreement II, Share                           
    Transfer Agreement III and Share Transfer Agreement                       
    IV                                                                        
                                                                              
    "Share Transfer Agreement I"    the agreement                             
    entered into between the Company and New Era on 20                        
    January 2005 for the Acquisition I                                        
                                                                              
    "Share Transfer Agreement II"   the agreement                             
    entered into between the Company and HS Econ on 20                        
    January 2005 for the Acquisition II                                       
                                                                              
    "Share Transfer Agreement III"  the agreement                             
    entered into between the Company and Xinjiang Group                       
    on 20 January 2005 for the Acquisition III                                
                                                                              
    "Share Transfer Agreement IV"   the agreement                             
    entered into between the Company and BJ Exhibition                        
    on 20 January 2005 for the Acquisition IV                                 
                                                                              
    "Shareholder(s)"        holder(s) of shares of the Company