09:39 SMI CORP<00198> - 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. SMI CORPORATION LIMITED (Incorporated in Bermuda with limited liability) (Stock code: 198) ANNOUNCEMENT DELAY IN DISPATCH OF THE CIRCULAR FOR PROPOSED ACQUISITION OF AN ADDITIONAL 35% INTEREST IN STELLAR CINEMA DEVELOPMENT LIMITED An application has been made to the Stock Exchange for an extension of time for the dispatch of the circular to Shareholders to a date on or before 29 April 2005. The Board refers to the announcement dated 16 March 2005 made by the Company (the "Announcement") in relation to the captioned transaction. Terms defined in the Announcement shall have the same meanings when used herein unless the context requires otherwise. Pursuant to the Listing Rules, a circular containing, amongst other things, (i) details of the transaction; and (ii) the notice for convening the Special General Meeting in which the necessary resolution will be proposed in order to seek Shareholders' approval, are required to be dispatched to the Shareholders within 21 days of the date of the announcement dated 16 March 2005, being not later than 6 April 2005. Stellar Cinema is a PRC domestic incorporated company and no audited financial information is required under the PRC statutory requirements. In light of the proposed acquisition and the requirements in accordance with the Listing Rules, audited financial information of Stellar Cinema is required to be included in the circular. Given that Stellar Cinema has prepared unaudited financial statements for the period between 14 February 2003 (the date of its incorporation) to 31 December 2003 and for the year ended 31 December 2004, the Company has therefore instructed an independent auditors to prepare the audit of Stellar Cinema for the period ended 31 December 2004 (i.e. instead of picking any dates prior to 31 December 2004 for the preparation of an interim/special audit). As no audit has been prepared for Stellar Cinema in the past as mentioned above, the time required to prepare the audited financial statements of Stellar Cinema for the period ended 31 December 2004 (in accordance with the GAAP applied in Hong Kong) for inclusion in the abovementioned circular to Shareholders would be longer than the 21 days period (as permitted under the Listing Rules). The earliest time to make such information available to the Stock Exchange will be mid-April 2005. Accordingly, an application has been made to the Stock Exchange for an extension of time for the dispatch of the abovementioned circular to a date on or before 29 April 2005. By order of the Board SMI Corporation Limited Ko Hiu Fung Company Secretary Hong Kong, 6 April 2005 The Board is comprised of 11 Directors, of which (i) eight are executive Directors, namely Mr. Qin Hong, Mr. Xing Jing, Mr. Li Kai, Mr. Tsang Chi Wai, Eric, Mr. Chan Pak Cheung, Natalis, Mr. Wong Kun To, Mr. Li Wei and Mr. Ren Jian Hong; and (ii) three are independent non-executive Directors, namely, Mr. Lam Tak Shing, Mr. Pang Hong and Mr. Qiao Zhen Pu.