10:25 CHINA SCI-TECH<00985> - Announcement & Resumption (3) Consolidation is in the best interests of the Company and the Shareholders as a whole. Trading Arrangement In order to facilitate the trading of odd lots of the New Shares arising from the Consolidation, the Company will appoint a broker (the `Agent') to act as agent to arrange for the sale and purchase of odd lots of the New Shares on behalf of the Shareholders. The Agent, details of which will be provided in the circular to the Shareholders, will provide the service for the sale and purchase of odd lots of the New Shares during the period from 11 March 2005 to 21 April 2005, both dates inclusive. Holders of the New Shares in odd lots who wish to take advantage of this facility either to dispose of or top up their odd lots to a board lot of 8,000 New Shares may, directly or through their brokers, contact the Agent during such period. Shareholders should note that successful matching of the sale and purchase of odd lots of the New Shares is not guaranteed. Free Exchange of Share Certificates Upon the Consolidation becoming unconditional, Shareholders may submit existing share certificates in exchange for the new share certificates for the New Shares free of charge to the Company's branch share register in Hong Kong, Tengis Limited, at Ground Floor, Bank of East Asia Harbour View Centre, 56 Gloucester Road, Wanchai, Hong Kong, during office hours from 11 March 2005 to 26 April 2005, both days inclusive. Thereafter, certificates for the Shares will be accepted for exchange at any time on payment of a prescribed fee. It is expected that the share certificates for the New Shares will be available for collection within a period of 10 business days after the submission of the existing share certificates to the Company's branch share register in Hong Kong, Tengis Limited, for exchange. Expected Timetable 2005 Despatch of circular on or before Monday, 21 February Latest time for lodging the form of proxy for the EGM on or before 9:00 a.m. on Tuesday, 8 March Date of EGM on or before 9:00 a.m. on Thursday,10 March Effective date of the Consolidation Friday,11 March Existing counter for trading in the Shares in board lots of 2,000 Shares temporarily closes Friday,11 March Temporary counter for trading in New Shares in board lots of 200 New Shares (in the form of existing share certificates) opens Friday,11 March Existing counter for trading in the New Shares in board lots of 8,000 New Shares (in the form of new share certificates) re-opens Wednesday,30 March Parallel trading of New Shares (in the form of existing and new share certificates) commences Wednesday, 30 March Parallel trading of New Shares (in the form of existing and new share certificates) ends Thursday,21 April Temporary counter for trading in New Shares in board lots of 200 New Shares (in the form of existing share certificates) closes Thursday,21 April Free exchange of new share certificates for the New Shares from Friday,11 March to Tuesday,26 April Service for the sale and purchase of odd lots of New Shares from Friday,11 March to Thursday,21 April NEW SHARES PLACING Date of the New Shares Placing Agreement 1 February 2005 Parties involved The Company and the Placing Agent Placing Agent The Placing Agent has conditionally agreed to place in the aggregate of 200,000,000 Placing Shares on a fully underwritten basis and will receive a placing commission of 2.5% on the gross proceeds of the New Shares Placing. The Placing Agent and its ultimate beneficial owners are not connected persons of the Company and are third parties independent of the Company and its connected persons. Placees Not less than six independent placees (which will be independent individual, corporate and/or institutional investors) (the `Share