09:49     CHINA EB INT'L<00257> - Announcement (11)                           

    "Project Company JV Contract"   the joint venture                         
    contract dated 1 November 2003 entered into between                       
    Qingdao Drainage and EB-VW for the purpose of forming                     
    the Project Company                                                       
                                                                              
    "Qingdao Drainage"      Qingdao Municipal Drainage                        
    Company, a State-owned company in the PRC                                 
                                                                              
    "RMB"   Renminbi, the lawful currency of the PRC                          
                                                                              
    "Services"      the provision by OTV SA of the services                   
    including offshore basic design, offshore project                         
    management, provision of process guarantee and other                      
    technical services and patent and proprietary                             
    provision to be used in the Maidao Extension                              
    Facilities                                                                
                                                                              
                                                                              
    "Service Contract"      the services contract for the                     
    Maidao Extension Facilities made between the Project                      
    Company and OTV SA dated 3 March 2005                                     
                                                                              
    "Service Requirements"  the description of the                            
    purpose, scope, standard, design criteria (if any)                        
    and programme of work, as included in the Service                         
    Contract, and any alterations and modifications                           
    thereto in accordance with the Service Contract                           
                                                                              
    "Shareholder(s)"        registered holder(s) of shares of                 
    the Company                                                               
                                                                              
    "Stock Exchange"        The Stock Exchange of Hong Kong                   
    Limited                                                                   
                                                                              
    "Tianjin Engineering Design     *(Tianjin Municipal Engineering           
      Institute"    Design Institute), a State-owned                          
    enterprise in the PRC, which is an Independent Third                      
    Party                                                                     
                                                                              
    "US$"   United States dollars, the lawful currency of                     
    the United States of America                                              
                                                                              
    "Veolia Group"  Veolia Environnement (a French                            
    company whose shares are listed on the Paris Stock                        
    Exchange) and its subsidiaries, with headquarters in                      
    Paris, France                                                             
                                                                              
    "Veolia Water"  Veolia Water, a French company,                           
    which is a member of the Veolia Group                                     
                                                                              
    "Veolia Water Systems"  Veolia Water Systems S.A., a                      
    French company, which is a member of the Veolia Group                     
                                                                              
    "Veolia Water Systems   *                                                 
    (Veolia Water Systems                                                     
      Shanghai"     Shanghai Company Ltd.), a company                         
    established in the PRC with limited liability, which                      
    is a wholly-owned subsidiary of Veolia Water Systems                      
                                                                              
    "Waste Water Treatment  the agreement dated as of                         
    1 June 2004 and entered into (by way                                      
      Agreement"    of adoption and amendment of the terms                    
    of the waste water treatment agreement entered into                       
    between Qingdao Veolia Waste Water Treatment Co., Ltd.                    
    and Qingdao Drainage on 31 August 2003) between the                       
    Project Company and Qingdao Drainage pursuant to                          
    which the Project Company will provide waste water                        
    treatment services and other related services to                          
    Qingdao Drainage on an exclusive basis                                    
                                                                              
    "Yu Ming"       Yu Ming Investment Management Limited,