10:16     CHI MER DICHAIN<00632> - Announcement (2)                           

    agreed to settle the costs for the year ended 31st March 2004 together    
    with costs for the financial year ended 31st March 2005.                  
                                                                              
    Pursuant to the Settlement Agreement, the Company and CTG have agreed     
    to settle the Debt by way of CTG issuing to the Company the               
    Consideration Shares at a price of US$0.09 per CTG Share. Following the   
    Settlement, there will be no outstanding amount owed by CTG to the        
    Company.                                                                  
                                                                              
    The Consideration Shares                                                  
                                                                              
    All Consideration Shares will be credited as fully paid and rank pari     
    passu in all respects with the existing issued CTG Shares, and will be    
    free from all options, liens, charges, claims, and encumbrances.          
                                                                              
    The Consideration Shares represent approximately 5.32% of the existing    
    issued share capital of CTG and approximately 5.05% of the issued share   
    capital of CTG as enlarged by the Consideration Shares. The issue price   
    of US$0.09 per Share was determined after arm's length negotiations       
    between the Company and CTG. The issue price of US$0.09 per CTG Share     
    is equal to the closing price of US$0.09 per CTG Share as quoted on the   
    OTC Board on 29th March 2005 and represents a discount of approximately   
    42% to the average closing price of US$0.15 per CTG Share as quoted on    
    the OTC Board for the last ten trading days up to and including 29th      
    March 2005, being the last trading day prior to the date of the           
    Settlement Agreement.                                                     
                                                                              
    Conditions                                                                
                                                                              
    Completion of the Settlement Agreement is conditional upon (i) the        
    board of directors of CTG approving the Settlement Agreement, the issue   
    of the Consideration Shares, the transactions contemplated in or          
    incidental to the Settlement Agreement and the implementation thereof;    
    and (ii) all necessary approval (if required by law or other rules and    
    regulations) being obtained by the Company.                               
                                                                              
    Completion                                                                
                                                                              
    Completion of the Settlement Agreement is expected to take place on the   
    third business day after the conditions are fulfilled (or such other      
    date as the Company and CTG may agree).                                   
                                                                              
    The following table illustrates the Company's shareholding changes in     
    CTG immediately before and after completion of the Settlement:            
                                                                              
      Immediately before  Immediately after                                   
      completion of  completion of                                            
      the Settlement   the Settlement                                         
      Number of  Shareholding   Number of   Shareholding                      
      CTG Shares  percentage  CTG Shares  percentage                          
                                                                              
    The Company  1,181,938  0.47%  14,510,562  5.5%                           
      (Note)                                                                  
    DiChain Holdings   148,349,250  59.19%  148,349,250  56.20%               
    Public  101,088,524  40.34%  101,088,524  38.30%                          
                                                                              
                                                                              
    Total  250,619,712  100%  263,948,336  100%                               
                                                                              
                                                                              
    Note:  The CTG Shares were acquired by the Company during the period      
    from 1996 to 2003                                                         
                                                                              
    Reasons                                                                   
                                                                              
    The Company and its subsidiaries ("Group") had been principally engaged   
    in operating bonded warehouse, provision of logistics and related         
    services and logistics-related property investment. CTG Shares are        
    listed on the OTC Board. CTG is a company incorporated in the British     
    Virgin Islands, headquartered in Hong Kong, and has operational offices   
    located in Shenzhen and six other major cities in the People's Republic   
    of China ("PRC"). CTG and its subsidiaries ("CTG Group") had been         
    principally engaged in providing information technology solutions for     
    the logistics and supply chain management industry in mainland China      
    and Hong Kong. One of CTG's subsidiaries was recognized as one of the     
    leading internet technology solution providers in logistics and supply    
    chain management in the PRC in 2002 and 2003 by a world leading           
    internet technology consulting firm. The Directors believe that not       
    only the Settlement will allow the Company to recover its debt due from   
    CTG by way of receiving marketable securities in CTG, it will also        
    enable the Company to invest into a leading internet technology           
    solution provider and to benefit from enhancement of its application      
    platform for future development.