09:42     CAPITAL STRAT<00497> - Announcement                                 

    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.                   
                                                                              
    CAPITAL STRATEGIC INVESTMENT LIMITED                                      
    (Incorporated in Bermuda with limited liability)                          
    (STOCK CODE: 497)                                                         
                                                                              
    PROPOSED ISSUE OF 75,000,000 NEW SHARES                                   
    TO                                                                        
    STRATEGIC INVESTORS                                                       
                                                                              
    WHITEWASH WAIVER APPLICATION                                              
    AND                                                                       
    PROPOSED PLACEMENT OF 25,000,000 NEW SHARES                               
                                                                              
    Financial adviser                                                         
                                                                              
    Reference is made to the announcements issued by the Company dated 8      
    and 14 March 2005 in relation to the captioned transactions. Terms        
    defined in the Announcements shall have the same meanings when used       
    herein unless the context requires otherwise.                             
                                                                              
    The Board would like to announce that on 30 March 2005, the Agent         
    informed the Board that it had, pursuant to and subject to the terms      
    and conditions of the Placing Agreement conditionally placed              
    25,000,000 new Shares to 6 subscribers, each of them is an independent    
    third-party to the Company, is not a connected person of the Company      
    and is not connected to or acting in concert with the Strategic           
    Investors, or the directors, chief executive, substantial shareholders    
    of the Company, or its subsidiaries and their respective associates,      
    or their respective connected persons.                                    
                                                                              
    The Placing is subject to Shareholders' approval at the Special           
    General Meeting.                                                          
                                                                              
    Reference is made to the announcements issued by the Company dated 8      
    and 14 March 2005 in relation to the captioned transactions (the          
    "Announcements"). Terms defined in the Announcements shall have the       
    same meanings when used herein unless the context requires otherwise.     
                                                                              
    The Board would like to announce that on 30 March 2005 the Agent          
    informed the Board that it had, pursuant to and subject to the terms      
    and conditions of the Placing Agreement conditionally placed              
    25,000,000 new Shares to 6 subscribers, each of them is an independent    
    third-party to the Company, is not a connected person of the Company      
    and is not connected to or acting in concert with the Strategic           
    Investors, or the directors, chief executive, substantial shareholders    
    of the Company, or its subsidiaries and their respective associates,      
    or their respective connected persons.                                    
                                                                              
    The Placing is subject to Shareholders' approval at the Special           
    General Meeting. A circular containing, among other things, further       
    details of the Placing, along with details of the Subscription, the       
    Whitewash Waiver, and the advice of the Independent Board Committee       
    and the independent financial adviser with regard to the Subscription     
    and Whitewash Waiver, will be dispatched to the Shareholders on or        
    before 18 April 2004, in accordance with the Listing Rules and the        
    Takeovers Code.                                                           
                                                                              
            By order of the Board                                             
            Capital Strategic Investment Limited                              
            Ma Wai Man, Catherine                                             
            Company Secretary                                                 
                                                                              
    Hong Kong, 31 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.