09:48     CHINA EB INT'L<00257> - Announcement (10)                           

    "Hong Kong"     The Hong Kong Special Administrative                      
    Region of the PRC                                                         
                                                                              
    "Independent Board      the committee of the board of the                 
    Directors, consisting of                                                  
      Committee"    independent non-executive Directors,                      
    to be formed to advise the Shareholders in respect                        
    of the Contracts                                                          
                                                                              
    "Independent Third Party(ies)"  independent third                         
    party(ies) who is(are) not connected person(s) (as                        
    defined in the Listing Rules) of the Company and                          
    is(are) independent of and not connected with the                         
    Company and any of its connected person (as defined                       
    in the Listing Rules)                                                     
                                                                              
    "Listing Rules" the Rules Governing the Listing of                        
    Securities on the Stock Exchange                                          
                                                                              
    "Maidao Extension Facilities"   the extension of the                      
    existing Qingdao Maidao waste water treatment plant                       
    located in the municipality of Qingdao, Shandong                          
    Province, the PRC                                                         
                                                                              
    "Operation and Maintenance      the operation and                         
    maintenance agreement dated as of 1 June 2004                             
      Agreement"    and entered into between the Project                      
    Company and Qingdao Veolia Water Operating Company                        
    Limited pursuant to which the Project Company will                        
    sub-contract the provision of the operation and                           
    maintenance services in respect of the Facilities to                      
    Qingdao Veolia Water Operating Company Limited                            
                                                                              
    "Operation Company JV   the joint venture contract                        
    dated 1 November 2003 entered into                                        
      Contract"     between the CE Environmental, Veolia                      
    Water and Qingdao Drainage for the purpose of forming                     
    Qingdao Veolia Water Operating Company Limited (*), which is a Sino-      
    foreign co-operative joint venture company established under              
    the laws of the PRC, which is owned as to 21% by CE                       
    Environmental, 78% by Veolia Water and 1% by Qingdao                      
    Drainage                                                                  
                                                                              
    "OTV SA"        OTV SA , a French company, which is a                     
    wholly-owned subsidiary of Veolia Water Systems                           
                                                                              
    "OTV Shenzhen"  *(OTV                                                     
    Engineering (Shenzhen) Company Ltd.), a company                           
    established in the PRC with limited liability, which                      
    is a wholly-owned subsidiary of Veolia Water Systems                      
                                                                              
    "PRC"   the People's Republic of China, and for the                       
    purpose of this announcement, excludes Hong Kong, the                     
    Macau Special Administrative Region and Taiwan                            
                                                                              
    "Previous Circular"     the circular of the Company dated                 
    8 July 2004 in relation to the continuing connected                       
    transactions contemplated by the Waste Water                              
    Treatment Agreement and the Operation and Maintenance                     
    Agreement                                                                 
                                                                              
    "Project"       the Project Company JV Contract and the                   
    Operation Company JV Contract as well as all the works                    
    and services in respect of the Facilities mentioned                       
    in the aforesaid two joint venture contracts                              
                                                                              
    "Project Company"       Qingdao EB-VW Waste Water                         
    Treatment Co. Ltd. (*), a                                                 
    Sino-foreign co-operative joint venture company                           
    established under the laws of the PRC, which is owned                     
    as to 60% by EB-VW and 40% by Qingdao Drainage