09:19     CAPITAL STRAT<00497>-Announcement & Resumption of Trading(3)        

    into between the Agent and the Company is on a best-efforts basis and     
    that the Agent will procure no less than three subscribers to             
    subscribe 25,000,000 new Shares. 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.                                             
                                                                              
    1.1        Date                                                           
                                                                              
    8 March 2005                                                              
                                                                              
    1.2        Parties                                                        
                                                                              
    1.2.1        With regard to the Strategic Investors                       
                                                                              
    (a)        The Company as the issuer; and                                 
                                                                              
    (b)        Eisner, New Oval and Calveston respectively as the             
    Strategic Investors.                                                      
                                                                              
    1.2.2        With regard to the Agent                                     
                                                                              
    (a)        The Company as the issuer; and                                 
                                                                              
    (b)        The Agent.                                                     
                                                                              
    1.2.3        Description about the Strategic Investors and the Agent      
                                                                              
    Eisner is a company wholly and beneficially owned by Mr. Li Tzar Kai,     
    Richard. Mr. Li, is the Chairman of PCCW Limited, the Chairman and        
    Chief Executive of the Pacific Century Group and the Chairman of          
    Pacific Century Premium Developments Limited and the Singapore-based      
    Pacific Century Regional Developments Limited. Eisner is an investment    
    holding company.                                                          
                                                                              
    New Oval, is an indirect wholly-owned subsidiary of ITC. New Oval is      
    an investment holding company.                                            
                                                                              
    Calveston is a company wholly and beneficially owned by Mr. Yuen Tin      
    Fan, Francis and his spouse. Mr. Yuen is the Chairman of Pacific          
    Century Insurance Holdings Limited, the Deputy Chairman of the Pacific    
    Century Group and a Deputy Chairman of PCCW Limited. Calveston is an      
    investment holding company.                                               
                                                                              
    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 with 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 Shares to the 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.         
                                                                              
    The Directors expect that (i) no new substantial shareholder will be      
    introduced to the Company and (ii) no new Director will be introduced     
    to the Board as a result of the Subscription and the Placing.             
                                                                              
    1.3        The new Shares                                                 
                                                                              
    Set out below are the number of new Shares to be subscribed by the        
    Strategic Investors and the subscribers to be procured by the Agent       
    respectively.                                                             
                                                                              
    Name of the subscribers        Number of new Shares                       
                                                                              
    the Strategic Investors:                                                  
      Eisner        25,000,000                                                
                                                                              
      New Oval        40,000,000                                              
                                                                              
      Calveston        10,000,000