09:44     CITIC 21CN<00241> - Announcement & Resumption of Trading (1)        

    The Stock Exchange of Hong Kong Limited takes no                          
    responsibility for the contents of this announcement,                     
    makes no representation as to its accuracy or                             
    completeness and expressly disclaims any liability                        
    whatsoever for any loss howsoever arising from or in                      
    reliance upon the whole or any part of the contents                       
    of this announcement.                                                     
                                                                              
    CITIC 21CN COMPANY LIMITED                                                
    (incorporated in Bermuda with limited liability)                          
    (Stock code: 241)                                                         
                                                                              
    ANNOUNCEMENT                                                              
    PROPOSED RIGHTS ISSUE OF WARRANTS                                         
    AND                                                                       
    RESUMPTION OF TRADING                                                     
                                                                              
    Underwriter                                                               
                                                                              
    Goldbond Securities Limited                                               
                                                                              
    The Company proposes to issue, by way of Rights Issue,                    
    not less than 548,970,998 and not more than                               
    572,586,554 Warrants at HK$0.10 each. The Company                         
    will provisionally allot one Warrant in nil-paid form                     
    for every six existing Shares held to the Qualifying                      
    Shareholders on the Record Date. The Rights Issue is                      
    not available to the Excluded Shareholders.                               
                                                                              
    As at the date of this announcement, there were                           
    3,293,825,996 Shares in issue. There were also                            
    141,693,336 units of outstanding Options which are                        
    convertible into Shares prior to the Record Date. If                      
    all of the subscription rights attaching to the                           
    Options are exercised and result in the issue of                          
    Shares on or before the Record Date, the number of                        
    issued Shares will be increased to 3,435,519,332                          
    Shares and the number of Warrants which may be issued                     
    pursuant to the Rights Issue will be increased to                         
    572,586,554 Warrants.                                                     
                                                                              
    Pursuant to the Underwriting Agreement, the Warrants                      
    have been fully underwritten by the Underwriter.                          
                                                                              
    The last day of dealing in the Shares on a cum-rights                     
    basis is 18 February 2005. The Shares will be dealt                       
    with on an ex-rights basis from 21 February 2005. To                      
    qualify for the Rights Issue, a Qualifying                                
    Shareholder's name must appear on the register of                         
    members of the Company on the Record Date, which is                       
    currently expected to be 25 February 2005. In order                       
    to be registered as members on the Record Date, any                       
    forms for the transfers of Shares (with the relevant                      
    share certificates) must be lodged for registration                       
    by 4:00 p.m. on 22 February 2005 (the closing of the                      
    share register is expected to be from 23 February 2005                    
    to 25 February 2005, both dates inclusive). Holders                       
    of the Options who wish to participate in the Rights                      
    Issue should exercise the rights attaching to the                         
    Options in accordance with their respective terms on                      
    or before 4:00 p.m. on 22 February 2005 so as to enable                   
    them to be registered as holders of Shares on or before                   
    the Record Date.                                                          
                                                                              
    It should be noted that the Underwriting Agreement                        
    contains provisions granting the Underwriter the                          
    right to terminate its obligations on the occurrence                      
    of certain events including force majeure. Please                         
    refer to the paragraph headed "Termination of the                         
    Underwriting Agreement" for further details.