10:23     SINOPEC KANTONS<00934> - Announcement (13)                          

    "KGSIM" Kantons Gas Station Investment & Management Co. Ltd.              
    (*), a limited liability company                                          
    established under the laws of the PRC in respect of which a ninety        
    per cent. (90%) equity interest is held by Huade and a ten per            
    cent. (10%) equity interest is held by GPC.                               
                                                                              
    "Kantons Petrol Stations"       the forty-seven (47) petrol               
    stations currently located in the Guangzhou Municipality (and             
    such other petrol stations from time to time) operated by the             
    Group through KGSIM, either on a contractual operating basis              
    or by virtue of its interest as a party to a joint venture or             
    as an investor.                                                           
                                                                              
    "Kantons Investment"    Kantons International Investment Limited          
    (and for identification only *), a company                                
    incorporated under the laws of the British Virgin Islands with            
    limited liability and a wholly-owned subsidiary of the Company.           
                                                                              
    "Listing Rules" the Rules Governing the Listing of Securities             
    on the Stock Exchange.                                                    
                                                                              
    "PRC"   the People's Republic of China, but for the purposes of           
    this announcement and for geographical reference only (unless             
    otherwise indicated) excludes Taiwan, Macau and Hong Kong.                
                                                                              
    "SGM"   the special general meeting of the Company to be convened         
    for the purpose of approving and ratifying the Existing Ongoing           
    Connected Transactions.                                                   
                                                                              
    "Second Waiver" second waiver to the connected transactions               
    requirements under the Listing Rules in relation to the Existing          
    Ongoing Connected Transactions by the Stock Exchange in August            
    2002.                                                                     
                                                                              
    "Sinochem"      * (China National Chemicals                               
    Import & Export Corporation), a State owned enterprise                    
    established under the laws of the PRC.                                    
                                                                              
    "Sinopec Corp." * (China Petroleum &                                      
    Chemical Corporation) (Stock Code: 386), a joint-stock limited            
    liability company incorporated in the PRC, the shares of which            
    are listed on the stock exchanges of Hong Kong, Shanghai, New             
    York and London.                                                          
                                                                              
    "Sinopec Corp. Framework        the agreement dated 18 February 2005      
    entered into between the Company and Sinopec Corp.                        
      Master Agreement"                                                       
                                                                              
    "Sinopec Group" Sinopec Group Company, its subsidiaries and its           
    associated companies and affiliates, including the Group, or              
    where the context so requires, any two or more members of such            
    group and the words "member of the Sinopec Group" shall mean              
    any one of them.                                                          
                                                                              
    "Sinopec Group Company" * (China                                          
    Petrochemical Corporation) (formerly known as * (China Petrochemical      
    Corporation)), an enterprise                                              
    established under the laws of the PRC, being the controlling              
    shareholder of Sinopec Corp. (by virtue of its holding of                 
    approximately 55.06% in the issued share capital in Sinopec Corp.)        
    and the ultimate controlling shareholder of the Company (by               
    virtue of Sinopec Corp.'s holding of approximately 72.34% in              
    the issued share capital of the Company).                                 
                                                                              
    "Sinopec Guangzhou Branch"      *                                         
    (China Petroleum & Chemical Corporation Guangzhou Branch), a              
    branch of Sinopec Corp..                                                  
                                                                              
    "Sinopec Guangzhou      the planned improvement and