09:48     CHINA EB INT'L<00257> - Announcement (9)                            

    subsidiary of the Company                                                 
                                                                              
    "Company"       China Everbright International Limited,                   
    a limited liability company incorporated in Hong Kong,                    
    the shares of which are listed on the Stock Exchange                      
                                                                              
    "Contracts"     the EPC Contract, the ES Contract and the                 
    Service Contract                                                          
                                                                              
    "EB-VW" EB-VW HK Holding Company Limited (*) (formerly known as Eagle     
    Choice Investment Limited), a limited liability company                   
    incorporated in Hong Kong on 15 October 2003, which                       
    is owned as to 60% by CE Environmental and 40% by Veolia                  
    Water                                                                     
                                                                              
    "EPC Contract"  the engineering, procurement &                            
    construction contract for the Maidao Extension                            
    Facilities made between the Project Company and a                         
    consortium of OTV Shenzhen, Veolia Water Systems                          
    Shanghai and Tianjin Engineering Design Institute on                      
    3 March 2005                                                              
                                                                              
    "EPC Requirements"      the description of the purpose,                   
    scope, standard, design criteria (if any) and                             
    programme of work, as included in the EPC Contract,                       
    and any alterations and modifications thereto in                          
    accordance with the EPC Contract                                          
                                                                              
    "EPC Works"     (i) the demolishment of the existing                      
    Chlorination Building and existing boundary wall                          
    located to the east side of the existing Maidao waste                     
    water treatment plant; and (ii) the provision of the                      
    140,000 m3/day extension of the existing Maidao waste                     
    water treatment plant and the provision of upgrading                      
    works and modifications to the existing Maidao waste                      
    water treatment plant to meet the design requirements                     
    of the aforesaid extension (which shall comprise the                      
    design, construction, commissioning, test on                              
    completion and the remedying of any defects therein)                      
    in accordance with the terms of the EPC Contract                          
                                                                              
    "ES Contract"   the equipment supply contract for the                     
    Maidao Extension Facilities made between the Project                      
    Company and OTV SA dated 3 March 2005                                     
                                                                              
    "ES Requirements"       the description of the purpose,                   
    scope, standard, design criteria (if any) and                             
    programme of work, as included in the ES Contract,                        
    and any alterations and modifications thereto in                          
    accordance with the ES Contract                                           
                                                                              
    "ES Works"      the design, procurement and delivery of                   
    equipment for the Maidao Extension Facilities and any                     
    other works necessary in connection therewith as                          
    defined in the ES Requirements                                            
                                                                              
    "Euro"  the lawful currency of the European Monetary                      
    Union                                                                     
                                                                              
    "Facilities"    the existing waste water treatment                        
    plants known as "Qingdao Haibohe" and "Qingdao                            
    Maidao" and the extension thereto upon the completion                     
    of the relevant construction works and the leased                         
    facilities, together with all fixed and moveable                          
    assets necessary or incidental to the construction,                       
    operation and maintenance of the Facilities and the                       
    extension thereto, all being located in the                               
    municipality of Qingdao, Shandong Province, the PRC                       
                                                                              
    "Group" the Company and its subsidiaries