09:31     CHIAHSIN CEMENT<00699> - Announcement                               

    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.               
                                                                              
    Chia Hsin Cement Greater China Holding Corporation                        
    (Incorporated in the Cayman Islands with limited liability)               
    (Stock code: 699)                                                         
                                                                              
    TERMINATION                                                               
    OF                                                                        
    A CONTINUING CONNECTED TRANSACTIONS                                       
                                                                              
    The Board announces that in accordance with the provisions on             
    termination in the Supply Agreement, both JCC and CHC agreed to           
    terminate the Supply Agreement on 4 March 2005.                           
                                                                              
                                                                              
    Reference is made to the announcements of the Company dated 20            
    January 2005 and 8 February 2005 (the `Announcements') in respect of      
    the continuing connected transactions relating to the supply of           
    certain type of cement by JCC to CHC.                                     
                                                                              
    BACKGROUND                                                                
    As disclosed in the Announcements, JCC, an indirectly wholly owned        
    subsidiary of the Company which is also a wholly foreign owned            
    enterprise, and CHC, the ultimate controlling shareholder of the          
    Company, entered into the Supply Agreement pursuant to which CHC          
    agrees to purchase from JCC certain type of cement in bulk at a fixed     
    price agreed between the parties and which shall be reviewed              
    quarterly by both parties.                                                
                                                                              
    The Supply Agreement is conditional upon the passing of the ordinary      
    resolution to be taken by poll by the Independent Shareholders at the     
    EGM approving the Supply Agreement and the Transactions including the     
    Proposed Caps which in any event shall not be later than 5:00 p.m. on     
    1 April 2005.                                                             
                                                                              
    TERMINATION OF THE SUPPLY AGREEMENT                                       
    Prior to the Supply Agreement becoming unconditional, in view of the      
    change of the cement market condition and the intensive competition       
    in the cement market, CHC and the Company negotiated and concluded        
    that JCC should enter into a cancellation agreement with CHC to           
    terminate the Supply Agreement and such cancellation agreement was        
    entered into between these parties on 4 March 2005. Although the          
    entering into of the Supply Agreement could broaden the Group's           
    sources of income, after the termination of the Supply Agreement, the     
    Group will continue to maintain its business relationship with its        
    existing customers and explore further overseas market customers to       
    be included in its sales portfolio. The Board therefore considers         
    that the termination of the Supply Agreement will not adversely           
    affect the sources of the income of the Company.                          
                                                                              
    Upon the above mutual agreement, the parties to the Supply Agreement      
    agreed to terminate the Supply Agreement and neither party shall have     
    any claim against each other, save for any antecedent breaches of the     
    terms of the Supply Agreement.                                            
                                                                              
    BOARD OF DIRECTORS                                                        
    As at the date of this announcement, the Board comprises Mr. Wang         
    Chien Kuo, Robert, Mr. Lan Jen Kuei, Konrad, Mr. Chang Kang Lung,         
    Jason and Ms. Wang Li Shin Elizabeth as the executive Directors, Mr.      
    Chang Yung Ping, Johnny, Mr. Chang An Ping, Nelson, and Mr. Mar Shaw      
    Hsiang as the non-executive Directors and Ms. Chen Meei Ling, Shelly,     
    Mr. Davin A. Mackenzie, Mr. Zhuge Pei Zhi and Mr. Wu Chun Ming as the     
    independent non-executive Directors.                                      
                                                                              
    By order of the Board                                                     
    Wang Chien Kuo, Robert                                                    
    Chairman                                                                  
                                                                              
    4 March 2005