09:42     CAPITAL STRAT<00497>-Announcement & Resumption of Trading(3)        

    "Announcement"        the announcement dated 8 March 2005 issued by       
    the Company in relation to the Subscription and the Placing               
                                                                              
    "acting in concert"        as defined in the Takeovers Code               
                                                                              
    "Earnest Equity"        Earnest Equity Limited, a company incorporated    
    in the British Virgin Islands with limited liability and beneficially     
    owned by Mr. Chung                                                        
                                                                              
    "Earnest Group Party"        Earnest Equity, Mr. Chung and parties        
    acting in concert with them                                               
                                                                              
    "Executive"        the Executive Director of the Corporate Finance        
    Division of SFC or any delegates of the Executive Director                
                                                                              
    "Independent Shareholders"        Shareholders other than Earnest         
    Group Party (which currently owns 170,067,250 Shares, representing        
    approximately 44.26% of the existing issued share capital of the          
    Company)                                                                  
                                                                              
    "Mr. Chung"        Chung Cho Yee, Mico, an non-executive Director and     
    controlling Shareholder (currently he and Earnest Equity held an          
    aggregate of 170,067,250 Shares, representing approximately 44.26% of     
    the existing issued share capital of the Company)                         
                                                                              
    "Offer"        the mandatory conditional cash offers made by Earnest      
    Equity to acquire all the issued Shares and all outstanding options of    
    the Company (other than those already owned by Earnest Equity and         
    parties acting in concert with it) as initially announced on 15           
    November 2004 and lapsed at 4:00 p.m. on 21 January 2005                  
                                                                              
    "SFC"        Securities and Futures Commission                            
                                                                              
    "Takeovers Code"        the Hong Kong Code on Takeovers and Mergers       
                                                                              
    "Waiver"        the whitewash waiver to be granted by the Executive       
    pursuant to Note 1 on dispensations from Rule 26 of the Takeovers Code    
    to exempt the Strategic Investors from any obligation to make general     
    offer of the Shares as a result of the completion of the Subscription     
                                                                              
            By order of the Board                                             
            Capital Strategic Investment Limited                              
            Ma Wai Man, Catherine                                             
            Company Secretary                                                 
                                                                              
    Hong Kong, 14 March 2005                                                  
                                                                              
    As at the date of this announcement, Mr. Choo Yeow Ming and Ms. Ma Wai    
    Man, Catherine are the executive Directors; Mr. Chung Cho Yee, Mico is    
    a non-executive Director; and Messrs. Liu Yeau-Hwan, Pete, Wong Sin       
    Just, Lam Lee G. and Cheng Yuk Wo are the independent non-executive       
    Directors.                                                                
                                                                              
    The Directors jointly and severally accept full responsibility for the    
    accuracy of the information contained in this announcement and            
    confirm, having made all reasonable enquiries, that to the best of        
    their knowledge, opinions expressed in this announcement have been        
    arrived at after due and careful consideration and there are no other     
    facts not contained in this announcement, the omission of which would     
    make any statement in this announcement misleading.