10:04     JIAODA HIGHTECH<00300> - Announcement (4)                           

    the Stock Exchange and Shanghai Stock Exchange, was                       
    formed by a strategic asset restructuring implemented                     
    by Yunnan Provincial Government ("*") and                                 
    Xi'an Communications University Industry (Group)                          
    Company ("*") in 2002. The                                                
    Company is the key enterprise manufacturing                               
    large-scale precision machines and has enjoyed                            
    glorious honors in the mechanical assembling industry                     
    in China. Its principal products include floor type                       
    boring and milling machine, numerical data                                
    controlling machining center, horizontal machining                        
    center, jig boring machine, energy saving centrifugal                     
    compressor, and air blower. Its products are widely                       
    sold across the PRC.                                                      
                                                                              
    Tos Varnsdorf, A.S., a limited liability company                          
    founded in Czech Republic in 1903, is one of the                          
    renowned horizontal boring and milling machine                            
    manufacturers in the world. Its main products are                         
    horizontal milling machines and machining centers.                        
    Over 90% of its products are for export, of which 70%                     
    is sold to Europe. Its products can be divided into                       
    four mainly categories: floor type boring and milling                     
    machine series (WRD series), planning and desk type                       
    boring and milling machine series (WHN series), desk                      
    type horizontal milling series (WH series) and                            
    horizontal machining center series (RRIMA. OPTIMA.                        
    VARIA).                                                                   
                                                                              
    GENERAL                                                                   
    The Directors (including independent non-executive                        
    directors) believe that terms of the joint venture                        
    agreement are fair and reasonable and in the best                         
    interests of the Company and its shareholders as a                        
    whole.                                                                    
                                                                              
    To the best of the Directors' knowledge, information                      
    and belief and having made reasonable enquiry, Tos                        
    Varnsdorf, A.S. and its ultimate beneficial owners                        
    are third parties independent of and are not connected                    
    with the Company and its connected persons.                               
                                                                              
    The establishment of the JV Company by the Company                        
    and Tos Varnsdorf, A.S. exceeds 5% but is less than                       
    25% of the percentage ratios calculations and,                            
    accordingly, constitutes a discloseable transaction                       
    for the Company under Rule 14.06(2) of the Listing                        
    Rules.                                                                    
                                                                              
    A circular containing details of the JV Agreement will                    
    be dispatched to shareholders of the Company within                       
    21 days after the publication of this announcement.                       
                                                                              
    DEFINITIONS                                                               
    The following terms are used in this announcement                         
    within the meanings set opposite them:                                    
                                                                              
    "connected persons"     has the meaning ascribed thereto                  
    under Rule 1.01, 14A.11 and 14A.12 of the Listing                         
    Rules                                                                     
                                                                              
    "Company"       Jiaoda Kunji High-Tech Company Limited,                   
    a joint stock limited company incorporated in the PRC,                    
    whose shares are listed on both the Stock Exchange                        
    and Shanghai Stock Exchange                                               
                                                                              
    "Director(s)"   the director(s) of the Company                            
                                                                              
    "Euro"  the single currency of a member state of the                      
    European Union that adopts or has adopted it as its                       
    lawful currency in accordance with legislation of the                     
    European Community relating to