11:15     CS CONSERVAT P<00351> - Announcement (6)                            

    strong demand for power, the volatile crude oil price and the unstable    
    international oil supply, the Board considers that waste incineration     
    and processing for generating electricity in the PRC has a promising      
    future with high returns.                                                 
                                                                              
    The total gross and net proceeds from the Placing and the Subscription    
    are estimated to be approximately HK$93.6 million and HK$91.3 million     
    respectively. It is the current intention of the Directors to use the     
    net proceeds in the following manner: (i) approximately HK$65.0 million   
    will be used for the proposed establishment of a new legal entity to      
    carry out waste incineration and processing business in the PRC; and      
    (ii) the balance of approximately HK$26.3 million will be used as         
    general working capital for the Group.                                    
                                                                              
    The Subscribers are confident of the business development of the Group,   
    in particular, the waste incineration and the processing business in the  
     PRC. As a result, they agreed to subscribe for the Subscription Shares   
    so that their interests in the Company will not be materially diluted.    
                                                                              
    CAPITAL RAISING ACTIVITIES OF THE COMPANY DURING THE PAST 12 MONTHS       
                                                                              
    The following table summaries the capital raising activities of the       
    Group during the past 12 months immediately before the date of this       
    announcement:                                                             
                                                                              
                Intended                                                      
          Subscriber/   Net proceeds   use of proceeds   Actual use of        
    proceeds as at the date of                                                
    Date of announcement   Event   Placees   (Approximately)                  
    (Approximately)   this announcement (Approximately)                       
                                                                              
    26 November 2004   Subscription of    Quadrant    HK$26.9 million         
    Future investment in waste    (i)   Approximately HK$ 25.8 million has    
       50,000,000    Investment       incineration and processing             
    already been used for investment in                                       
       new Shares    Holdings Ltd.      business in the PRC      waste        
    incineration and processing                                               
       at HK$0.54                     business in the PRC; and                
       per Shares                 (ii)   Approximately HK$1.1 million as      
                           general working capital                            
                                                                              
    27 August 2004   Placing of    Not fewer than    HK$58.7 million   (i)    
       Not more than    (i)   Approximately HK$40.2 million                   
    (as supplemented by    134,660,000    six independent          HK$30.0    
    million       used for the joint venture in Guilin,                       
    a supplemental    new Shares at    investors         for future           
    investments       the PRC, to carry on waste                              
    placing agreement    HK$0.45 per             in a waste incineration      
           incineration and processing                                        
    on 8 September 2004)   Share on a             and processing              
    business;                                                                 
       fully underwritten             business in the PRC;   (ii)             
    Approximately HK$16.0 million                                             
       basis         (ii)   About HK$20.0       used as operating expenses;   
    and                                                                       
                   million for making    (iii) Approximately HK$2.5 million   
    used                                                                      
                   investments in an       as part of the consideration for   
    the                                                                       
                   environmental       acquisition of the 39% equity          
    interest                                                                  
                   protection project       in Dongguan China Sciences        
                   in the PRC; and      Conservational Power Co, Ltd.         
                (iii)   remaining of about                                    
                   HK$8.7 million for                                         
                   general working capital.                                   
                                                                              
    25 June 2004   Subscription of   CIAM   HK$19.0 million   Future          
    investment in waste    HK$19.0 million has been used to finance           
       HK$20,000,000         incineration and processing    the acquisition   
    of approximately 32.89%                                                   
       8.5% extendable         business in the PRC.   equity interest in      
    Bejing China Sciences                                                     
       convertible notes               General Energy & Environment Co.,      
    Ltd.                                                                      
       due 2006                                                               
                                                                              
    12 May 2004   Placing of   Not fewer than    HK$15.0 million   (i)        
    About HK$2.0 million    (i)   Approximately HK$2.1 million for            
       11,200,000   six independent          for repayment of loans;          
    repayment of bank loans;                                                  
       new Old Shares   investors         and   (ii)   Approximately HK$8.82  
     million was                                                              
       at HK$1.40 per         (ii)   Remaining HK$13.0       used for         
    payment of operating