09:48     CHINA WATER<00855> - Announcement & Resumption (5)                  

    "Placing Agent"   :   China Everbright Securities (HK) Limited,           
    a corporation licensed to conduct type 1 (dealing in                      
    securities) regulated activities under the Securities and                 
    Futures Ordinance                                                         
                                                                              
    "Placing Agreement"   :   the placing agreement entered into              
    on 4th April, 2005 between the Vendor, the Company and the                
    Placing Agent in relation to the Placing                                  
                                                                              
    "Placing Price"   :   HK$0.50 per Placing Share                           
                                                                              
    "Placing Shares"   :   57,600,000 Shares currently owned by               
    the Vendor                                                                
                                                                              
    "PRC"   :   the People's Republic of China                                
                                                                              
    "Share(s)"   :   Ordinary share(s) of nominal value of HK$0.01            
    each in the capital of the Company                                        
                                                                              
    "Stock Exchange"   :   The Stock Exchange of Hong Kong Limited            
                                                                              
    "Subscription"   :   the subscription for the New Shares by               
    the Vendor pursuant to the Subscription Agreement                         
                                                                              
    "Subscription Agreement"   :   the subscription agreement                 
    entered into on 4th April, 2005 between the Vendor and the                
    Company in relation to the Subscription                                   
                                                                              
    "Subscription Price"   :   a price equivalent to the price per            
    Share of each of the Placing Shares, net of expenses in                   
    relation to the Placing                                                   
                                                                              
    "Vendor"   :   Assets Full Resources Limited, a company                   
    incorporated in the British Virgin Islands, which is                      
    principally engages in investment holding, whose entire issued            
    capital is legally and beneficially owned by Mr. Duan Chuan               
    Liang, an executive Director                                              
                                                                              
    By Order of the Board                                                     
    China Water Affairs Group Limited                                         
    Duan Chuan Liang                                                          
    Chairman                                                                  
                                                                              
    Hong Kong, 4th April, 2005                                                
                                                                              
    As at the date hereof, the executive directors of the Company             
    are Mr. Duan Chuan Liang, Mr. Tsui Chi Kin, the non-executive             
    directors are Mr. Zhao Hai Hu, Mr. Chiu Shun Pui, Andrew, Mr.             
    Zhou Wen Zhi and the independent non-executive directors are              
    Mr. Chen Lizhong, Ms. Huang Shao Yun and Mr. Chan Chi Shing.              
    The directors of the Company 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 the 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 herein misleading.