09:58     CHINA VELOCITY<00149> - Announcement (2)                            

    property of about 75,000 square metres for resale purpose. The            
    development costs have not been estimated at this time as there is no     
    immediate plan for the construction of the site. The Property will        
    solidify the land reserve for future development projects.                
                                                                              
    Information on Renowed                                                    
                                                                              
    Renowed is wholly owned by the Vendor, and Superwide is a wholly owned    
    subsidiary of Renowed. Following completion of the Acquisition,           
    Renowed will become a wholly owned subsidiary of the Company.             
                                                                              
    Renowed is an investment company and the shares of Superwide is the       
    only assets held by Renowed. It was not required under the laws of the    
    place of its incorporation to prepare profit and loss account for the     
    two years ended 31 December 2004 since it did not carry on any            
    business other than holding the shares of Superwide. Based on the         
    valuation of the Property of HK$35 million plus goodwill on               
    consolidation of Renowed of HK$12.3 million as recorded in its            
    unaudited consolidated management accounts as at 31 December 2004, the    
    consolidated total assets of Renowed including the Property is valued     
    at approximately HK$47.3 million, while the negative net tangible         
    asset value of Renowed was approximately HK$12.3 million.                 
                                                                              
    General                                                                   
                                                                              
    The Company will fund the Acquisition through its own internal            
    resources.                                                                
                                                                              
    The Acquisition constitutes a discloseable transaction of the Company     
    under the Listing Rules. A circular of the Company in relation to the     
    Agreement and the Acquisition will be dispatched to shareholders of       
    the Company as soon as reasonably practicable.                            
                                                                              
    Definitions:-                                                             
                                                                              
    In this announcement, the following terms have the following              
    meanings:-                                                                
                                                                              
    "Agreement"        The agreement dated 4 April 2005 in relation to the    
    sale and purchase of the Sale Shares and Sale Loan entered into           
    between the Vendor and the Purchaser                                      
                                                                              
    "BVI"        British Virgin Islands                                       
                                                                              
    "Company"        China Velocity Group Limited, a company incorporated     
    in Bermuda with limited liability which shares are listed on the Stock    
    Exchange                                                                  
                                                                              
    "Consideration"        the aggregate purchase price of HK$35,000,000      
    of which HK$8.00 represents the consideration for the Sale Shares and     
    the remaining HK$34,999,992 represents the consideration for the Sale     
    Loan.                                                                     
                                                                              
    "Directors"        the directors of the Company                           
                                                                              
    "Acquisition"        the proposed acquisition of the Sale Shares and      
    the Sale Loan pursuant to the Agreement                                   
                                                                              
    "Group"        the Company and it subsidiaries                            
                                                                              
    "HK$"        Hong Kong Dollars, the lawful currency of Hong Kong          
                                                                              
    "Independent Third Party"        any person who and whose ultimate        
    beneficial owner are independent of and not connected to the Company,     
    any director, chief executive or substantial shareholder of the           
    Company or any of its subsidiaries or any of their respective             
    associates (as defined in the Listing Rules) and is not a connected       
    person of the Company (as defined in the Listing Rules)                   
                                                                              
    "Long Stop Date"        30 April 2005                                     
                                                                              
    "Listing Rules"        the Rules Governing the Listing of Securities      
    on the Stock Exchange of Hong Kong Limited                                
                                                                              
    "PRC"        The People's Republic of China                               
                                                                              
    "Property"        means the development site of Longling Portion,         
    Bantian Yangmei Estate, Buji County, Longgang District, Shenzhen, the     
    PRC with an aggregate site area of approximately 91,901.90 square         
    meters located at designated areas for residential use