09:48 CATIC INT'L<00232> - 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. CATIC INTERNATIONAL HOLDINGS LIMITED (Incorporated in Bermuda with limited liability) (Stock Code: 232) FURTHER EXTENSION OF THE LONG STOP DATE The Board wishes to make reference to the announcements of CATIC International Holdings Limited (the "Company") dated 30 March 2004 and 17 September 2004 which set out in detail the transaction contemplated under an agreement for the sale and purchase of certain shares in, and assignment of shareholder's loan owed by, CATIC International Support Limited ("CISL") entered into between Florex Investment Limited ("Florex") and CATIC (H.K.) Limited ("CATIC HK") on 29 March 2004 (the "Agreement") and the agreement between the parties to extend the date by which the conditions precedent of the Agreement must be fulfilled (the "Long Stop Date") from 30 June 2004 to 31 March 2005. The Board wishes to announce that as further time is still required for one of the conditions stipulated in the Agreement to be fulfilled, Florex and CATIC HK have mutually agreed in writing to further extend the Long Stop Date from 31 March 2005 to 30 September 2005, or such later date as the parties may agree in writing. INTRODUCTION The Board wishes to make reference to the announcement of the Company dated 30 March 2004 which sets out in detail the transaction contemplated under the Agreement entered into between Florex, a wholly-owned subsidiary of the Company, as the purchaser, and CATIC HK, a substantial shareholder of the Company, as the vendor. The transaction contemplated under the Agreement constitutes a discloseable and connected transaction of the Company and had been approved by the independent shareholders of the Company at the special general meeting of the Company held on 20 May 2004. The Board also wishes to make reference to the announcement of the Company dated 17 September 2004 which sets out that Florex and CATIC HK have mutually agreed in writing to extend the Long Stop Date from 30 June 2004 to 31 March 2005, or such later date as the parties may agree in writing. FURTHER EXTENSION OF THE LONG STOP DATE As at the date of this announcement, all conditions stipulated in the Agreement have been fulfilled except (i) CATIC HK will have to provide a non-interest bearing loan of HK$50 million (the "Loan") to CISL; and (ii) the warranties given by CATIC HK to Florex will have to remain true and accurate and not misleading as at the date of completion of the Agreement. As Florex and CATIC HK are still in the process of finalising the future business plan and operation of CISL, additional time is required for CATIC HK to provide the Loan to CISL. The parties have therefore mutually agreed in writing to extend the Long Stop Date from 31 March 2005 to 30 September 2005, or such later date as the parties may agree in writing. The further extension of the Long Stop Date does not have any material adverse effect on the operation and financial position of the Company. As the transaction contemplated under the Agreement is subject to the outstanding conditions of the Agreement being fulfilled it may or may not proceed. Shareholders of the Company and potential investors should therefore exercise caution when dealing in the shares of the Company. GENERAL As at the date of this announcement, the board of directors of the Company comprises Mr. Fu Shula, Mr. Wang Xinkuo, Mr. Ji Guirong, Mr. Yang Chunshu, Ms. Yu Li and Mr. Ren Haifeng as executive directors, Mr. Ip Tak Chuen, Edmond as non-executive director and Mr. Chu Yu Lin, David, Mr. Li Ka Cheung, Eric and Mr. Li Zhaoxi as independent non-executive directors. By order of the Board of CATIC International Holdings Limited Fu Shula Chairman of the Board Hong Kong, 31 March 2005