11:15     CS CONSERVAT P<00351> - Announcement (4)                            

    notes.                                                                    
                                                                              
    2.2   The Subscription Shares                                             
                                                                              
    Pursuant to the Subscription Letter, the Company will allot and issue     
    and the Subscribers will subscribe 30,000,000 new Shares, representing    
    an aggregate of approximately 3.21% of the existing issued share capital  
     of the Company at the Subscription Price. Based on the Subscription      
    Price of HK$0.78, the 30,000,000 Subscription Shares were valued at       
    HK$23.4 million.                                                          
                                                                              
    The table below sets out the number of new Shares to be subscribed by     
    the Subscribers:                                                          
                                                                              
       Number of Shares                                                       
    Name of Subscribers   to be subscribed                                    
                                                                              
    Sky Bright   8,500,000                                                    
    Mr. Hon   6,500,000                                                       
    CIAM   5,550,000                                                          
    CCIH   9,450,000                                                          
                                                                              
                                                                              
    Total   30,000,000                                                        
                                                                              
                                                                              
    2.3   The Subscription Price                                              
                                                                              
    The Subscription Price is equal to the Placing Price and represents a     
    discount of approximately 7.14% to the closing price of HK$0.84 per       
    Share as quoted on the Stock Exchange on 22 March 2005 (being the last    
    trading day prior to the suspension of trading in the Shares pending the  
     release of this announcement) and a discount of approximately 3.70% to   
    the average closing price of approximately HK$0.81 per Share as quoted    
    on the Stock Exchange for the last 5 trading days up to and including 22  
     March 2005.                                                              
                                                                              
    The Subscription Price of HK$0.78 per Share was arrived at after arm's    
    length negotiations between the Company and the Subscribers.              
                                                                              
    The Subscription Shares will be issued free from all liens, charges and   
    encumbrances, claims, or third party rights and together with all rights  
     attaching thereto as at the date of allotment and issue thereof,         
    including the right to receive all dividends or other distributions       
    declared on the Subscription Shares at any time on or after the date of   
    allotment and issue thereof.                                              
                                                                              
    2.4   Application for Listing                                             
                                                                              
    An application will be made to the Listing Committee of the Stock         
    Exchange for the listing of, and permission to deal in, the Subscription  
     Shares to be issued pursuant to the Subscription.                        
                                                                              
    2.5   Ranking of the Subscription Shares                                  
                                                                              
    The Subscription Shares, when issued and fully paid, will rank equally    
    with the Shares in issue as at the date of issue of the Subscription      
    Shares.                                                                   
                                                                              
    2.6   Conditions of the Subscription                                      
                                                                              
    Completion of the Subscription is conditional upon (i) the Listing        
    Committee of the Stock Exchange granting the listing and permission to    
    deal in all of the Subscription Shares to be issued under the             
    Subscription; and (ii) the approval of the Subscription by the            
    Independent Shareholders by way of poll at the EGM on or before 10 May    
    2005 or such later date as may be agreed between the Company and the      
    Subscribers.                                                              
                                                                              
    2.7   Completion of Subscription                                          
                                                                              
    Subject to fulfillment of the above conditions, completion of the         
    Subscription will take place on the date falling two business days after  
     the date upon which all the conditions set out above are satisfied or    
    on such later date as the Company and Subscribers may agree in writing.   
                                                                              
    EFFECT ON THE SHAREHOLDING OF THE COMPANY FOLLOWING COMPLETION OF THE     
    PLACING AND SUBSCRIPTION:                                                 
                                                                              
    The shareholdings in the Company immediately before and after completion  
     of the Placing and Subscription are summarised as follows:               
                                                                              
                   Shareholding                                               
       Shareholding       Shareholding       immediately                      
       as at       immediately       after completion of