09:19     CAPITAL STRAT<00497>-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.                   
                                                                              
    CAPITAL STRATEGIC INVESTMENT LIMITED                                      
    (Incorporated in Bermuda with limited liability)                          
    (STOCK CODE: 497)                                                         
                                                                              
    PROPOSED ISSUE OF 100,000,000 NEW SHARES                                  
                                                                              
    TO                                                                        
                                                                              
    STRATEGIC INVESTORS                                                       
                                                                              
    AND                                                                       
                                                                              
    Resumption of Trading                                                     
                                                                              
    Financial adviser                                                         
                                                                              
    The Subscription and the Placing                                          
                                                                              
    On 8 March 2005, the Company entered into three Subscription              
    Agreements with a number of strategic investors (together the             
    "Strategic Investors") and a placing agreement with the Agent.            
                                                                              
    Pursuant to the Subscription Agreements, the Strategic Investors have     
    conditionally agreed to subscribe for an aggregate of 75,000,000 new      
    Shares at the subscription price of HK$1.08 per Share. Pursuant to the    
    Placing Agreement entered into between the Agent and the Company, the     
    Agent will procure subscribers to subscribe 25,000,000 new Shares at      
    the subscription price of HK$1.08 per Share on a best-efforts basis.      
                                                                              
    The Strategic Investors are (i) Eisner, a company wholly and              
    beneficially owned by Mr. Li Tzar Kai, Richard; (ii) New Oval, an         
    indirect wholly-owned subsidiary of ITC; and (iii) Calveston, a           
    company wholly and beneficially owned by Mr. Yuen Tin Fan, Francis and    
    his spouse.                                                               
                                                                              
    Pursuant to each of the Subscription Agreement entered into between       
    each of the Strategic Investors and the Company, (i) Eisner will          
    conditionally subscribe 25,000,000 new Shares; (ii) New Oval will         
    conditionally subscribe 40,000,000 new Shares; and (iii) Calveston        
    will conditionally subscribe 10,000,000 new Shares. Pursuant to the       
    Placing Agreement entered into between the Agent and the Company, the     
    Agent will procure no less than three subscribers to subscribe            
    25,000,000 new Shares on a best-efforts basis. The Company undertakes     
    to make further announcement as soon as practicable once the              
    subscribers under the Placing Agreement have been identified and, in      
    any event, prior to the dispatch of the circular to the Shareholders      
    with regard to the Subscription and the Placing.                          
                                                                              
    The 100,000,000 new Shares represent approximately 26.08% of the          
    existing issued share capital of the Company prior to the Subscription    
    and the Placing and approximately 20.65% of the issued share capital      
    of the Company as enlarged by the Subscription and the Placing.           
                                                                              
    To the best of the Directors' knowledge, information and belief, and      
    after having made all reasonable enquiry, each of the Strategic           
    Investors is an independent third party to the Company, is not, a         
    connected person of the Company and is not connected to the directors,    
    chief executive, substantial shareholder of the Company, or its           
    subsidiaries and their respective associates, or their respective         
    connected persons.                                                        
                                                                              
    The Agent is not a connected person of the Company and is independent     
    of and not connected with the directors, chief executive, substantial     
    shareholder of the Company, or its subsidiaries and their respective      
    associates, or their respective connected persons. The Agent will use     
    reasonable endeavours to place the new Share to subscribers (and their    
    respective ultimate beneficial owners) who will not be connected          
    persons of the Company and will be independent of and not connected       
    with the Strategic Investors or the directors, the chief executive or     
    the substantial shareholders of the Company or its subsidiaries and/or    
    their respective associates and its respective connected persons.         
                                                                              
    Reasons for the Subscription and the Placing and use of proceeds          
                                                                              
    The Board views the Subscription and the Placing as a good opportunity    
    to strengthen the Company's balance sheet as well as to better equip      
    the Group with the financial flexibility for seeking suitable             
    investment opportunities, including larger scale property projects and    
    other strategic investment, both in Hong Kong and within South East       
    Asia in which the Company considers may provide lucrative investment      
    return. Although the Group reviews and considers investment