09:47     CITIC 21CN<00241> - Announcement & Resumption of Trading(10)        

    Rights Issue expected to become unconditional                             
            4:00 p.m. on Wednesday, 16 March                                  
    Announcement of results of acceptance of the Rights                       
    Issue   Thursday, 17 March                                                
    Despatch of refund cheques in respect of wholly or                        
    partially                                                                 
      unsuccessful excess applications      Friday, 18                        
    March                                                                     
    Certificates for fully-paid Warrants expected to be                       
    despatched on or before Friday, 18 March                                  
    First day of dealings in the fully-paid Warrants                          
            Tuesday, 22 March                                                 
                                                                              
    Dates or deadlines specified in this announcement for                     
    events in the timetable for (or otherwise in relation                     
    to) the Rights Issue is indicative only and may be                        
    executed or varied by agreement between the Company                       
    and the Underwriter. Any consequential changes to the                     
    expected timetable will be published or notified to                       
    Shareholders appropriately.                                               
                                                                              
    REASONS FOR AND USE OF PROCEEDS OF THE RIGHTS ISSUE                       
    The Company is an investment holding company. The                         
    principal activities of the Company and its                               
    subsidiaries are telecommunications value-added                           
    services, system integration and software                                 
    development.                                                              
                                                                              
    The net proceeds of the Rights Issue is expected to                       
    amount to not less than HK$50 million (depending on                       
    the number of Shares in issue on the Record Date) out                     
    of which approximately HK$30 million will be used to                      
    finance the development of the joint venture company,                     
    (CITIC Quality Check                                                      
    Information Technology Co., Ltd.*), which intends to                      
    be engaged in the provision of authentication service                     
    for commodities currently being traded in the PRC,                        
    and the balance for general working capital purpose.                      
                                                                              
    Full exercise of the Warrants would result in the                         
    Company receiving an additional fund of approximately                     
    HK$1,317.53 million (assuming 548,970,998 Warrants                        
    to be issued) or approximately HK$1,374.21 million                        
    (assuming 572,586,554 Warrants to be issued) before                       
    expenses, which is intended to be used for funding                        
    the future development of the Group's businesses as                       
    well as for general working capital purpose.                              
                                                                              
    The Directors consider that raising funds by way of                       
    the Rights Issue allow Qualifying Shareholders to                         
    maintain their respective pro rata shareholdings in                       
    the Company and participate in the future growth and                      
    development of the Company. Moreover, the Directors                       
    consider offering Warrants instead of Shares to                           
    Qualifying Shareholders as a way to provide them the                      
    right to participate in the future prospect of the                        
    Company by investing in the Shares, but at the same                       
    time giving them the opportunity to defer their                           
    investment decision in respect of the Shares until                        
    a later time due to the market volatility which                           
    appears to prevail at present.                                            
                                                                              
    WARNING OF THE RISK OF DEALING IN SHARES AND WARRANTS                     
    Existing Shares will be dealt in on an ex-rights basis                    
    from 21 February 2005. Dealings in the Warrants in                        
    the nil-paid form will take place from 1 March 2005                       
    to 9 March 2005 (both dates inclusive). If the                            
    conditions of the Rights Issue are not fulfilled, the                     
    Rights Issue will not proceed.                                            
                                                                              
    Any Shareholders or other persons contemplating                           
    selling or purchasing Shares and/or Warrants in their                     
    nil-paid form during the period from 1 March