09:27     CHINA AEROSPACE<00031>&CASIL TELECOM<01185>-J.Ann&Resume(8)         

    Investments Limited, Sin King Enterprises Company Limited, Burhill        
    Company Limited, Jet Square Developments International Limited, Star      
    River Assets Limited and Full Power International Limited (which          
    together hold approximately 41.86% equity interest in CASIL and which     
    are all wholly-owned subsidiaries of CASC) and their respective           
    associates (as defined under the Listing Rules);                          
                                                                              
    "Listing Rules"  the Rules Governing the Listing of Securities on the     
    Stock Exchange;                                                           
                                                                              
    "PRC"  People's Republic of China;                                        
                                                                              
    "Sale and Purchase   the sale and purchase agreement dated 22 January     
    2005 between CASIL   Agreement"  and CALT in respect of the proposed      
    transfer of CASIL's entire 100% equity interest in Astrotech (which, in   
    turn, holds approximately 44.17% equity interest in CASTEL) to CALT;      
                                                                              
    "SFC"  the Securities and Futures Commission of Hong Kong;                
                                                                              
    "Stock Exchange"  The Stock Exchange of Hong Kong Limited;                
                                                                              
    "Takeovers Code"  the Hong Kong Code on Takeovers and Mergers;            
                                                                              
    "HK$"  Hong Kong dollars, the lawful currency of Hong Kong;               
                                                                              
    "US$"  United States dollars, the lawful currency of the United States;   
    and                                                                       
                                                                              
    "%"  per cent.                                                            
                                                                              
    In this announcement, conversion of US$ into HK$ is based on the          
    exchange rate of US$1.00 = HK$7.80 for illustration purpose only.         
                                                                              
      By order of the board of directors of                                   
      China Aerospace International Holdings Limited                          
      Rui Xiaowu                                                              
      Chairman                                                                
                                                                              
      By order of the board of directors of                                   
      CASIL Telecommunications Holdings Limited                               
      Wang Xiaodong                                                           
      Vice-chairman and Managing Director                                     
                                                                              
    Hong Kong, 24 January 2005