09:33     PAUL Y-ITC<00498> - 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.                                
                                                                              
    PAUL Y. - ITC CONSTRUCTION HOLDINGS LIMITED                               
    (Incorporated in Bermuda with limited liability)                          
    (Stock Code: 498)                                                         
                                                                              
    ANNOUNCEMENT IN COMPLIANCE WITH                                           
    RULE 13.09 OF THE LISTING RULES                                           
                                                                              
    The Company wishes to announce that it has entered into a sale            
    and purchase agreement to dispose 135 million shares in CSH.              
    Upon completion of the Disposal, CSH will no longer be an                 
    associated company of the Company.                                        
                                                                              
    Paul Y. - ITC Construction Holdings Limited (the "Company")               
    wishes to announce that it has entered into a sale and                    
    purchase agreement with an independent third party not                    
    connected with the Company or its connected persons in                    
    relation to the disposal of 135 million of shares in China                
    Strategic Holdings Limited ("CSH") (the "Disposal"). Upon                 
    completion of the Disposal, the Company's shareholding                    
    interest in CSH will be decreased from approximately 29.4% to             
    approximately 14% and CSH will no longer be an associated                 
    company of the Company. It is expected that the Company will              
    recognize an estimated aggregate loss of approximately HK$119             
    million before tax and expenses under the Disposal.                       
                                                                              
    The Disposal is conditional upon, inter alia, the completion              
    of certain group and capital reorganisation (the "Group                   
    Reorganisation") of CSH involving a distribution of certain of            
    its assets to its shareholders. Upon completion of the Group              
    Reorganisation, the Company may further divest of its                     
    remaining interests in relation to the distributed assets of              
    CSH by accepting a voluntary general offer from Hanny Holdings            
    Limited ("Hanny"), a listed company in Hong Kong which                    
    currently also holds approximately 29.4% shareholding interest            
    in CSH. At the current stage, the Company has not yet formed              
    any definite intention as to whether or not it will accept                
    such voluntary general offer from Hanny. The entering into of             
    the sale and purchase agreement by the Company does not                   
    constitute a notifiable transaction on its own. However, in               
    the event that the Company further divests its interests in               
    relation to the distributed assets of CSH following the Group             
    Reorganisation, a notifiable transaction of the Company may               
    arise. The Company will comply with the requirements of the               
    Rules Governing the Listing of Securities on The Stock                    
    Exchange of Hong Kong Limited (the "Listing Rules") and make              
    further announcement(s) as and when appropriate.                          
                                                                              
    The directors of the Company (the "Directors") has been                   
    informed that a draft announcement including, inter alia,                 
    details of the Group Reorganisation has been submitted by CSH             
    and Hanny to The Stock Exchange of Hong Kong Limited (the                 
    "Stock Exchange") and the Securities and Futures Commission               
    for vetting and clearance. The Company intends to also release            
    an announcement to give its shareholders more information on              
    the Disposal and the Group Reorganisation simultaneously upon             
    publication of such announcement by CSH and Hanny.                        
                                                                              
    The Disposal and the Group Reorganisation may or may not                  
    proceed. Accordingly, shareholders and investors should                   
    exercise caution when dealing in the securities of the Company.           
                                                                              
    The Directors consider that it is necessary to publish this               
    announcement in order to promptly inform its shareholders of              
    the latest development in relation to the Disposal and the                
    Group Reorganisation under rule 13.09 of the Listing Rules.               
    The Directors consider that the information contained in this             
    announcement is full and complete and not misleading for this             
    purpose. Pending the release of this announcement regarding               
    the latest status of the Disposal and the Group Reorganisation            
    which the Directors considered to contain price sensitive                 
    information, the Company had requested a suspension of trading            
    of its shares on the Stock Exchange with effect from 10:00 a.m.           
    on 8th March, 2005. An application has been made to the Stock             
    Exchange to resume trading from 9:30 a.m. on 15th March, 2005.            
                                                                              
    As at the date of this announcement, the Directors are as                 
    follows: