10:02     CHINA TRAVEL HK<00308> - Announcement (1)                           

    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.                   
                                                                              
                                                                              
    CHINA TRAVEL INTERNATIONAL INVESTMENT HONG KONG LIMITED                   
    (Incorporated in Hong Kong under the Companies Ordinance)                 
    (Stock Code: 308)                                                         
                                                                              
    CONNECTED TRANSACTION                                                     
                                                                              
    On 4 April 2005, CTS Cargo, a wholly-owned subsidiary of the Company,     
    reached an agreement with the CTSIT Management whereby CTS Cargo would    
    sell all its interest in the entire registered capital of SHIEC for a     
    consideration of RMB14,295,387.69 (approximately HK$13,486,214.80).       
                                                                              
    The CTSIT Management are directors and senior management of CTSIT and     
    therefore are connected persons of the Company. The Disposal constitutes  
    a connected transaction for the Company under the Listing Rules. As each  
    of the applicable percentage ratios as defined in Rule 14A.10 of the      
    Listing Rules is more than 0.1% but less than 2.5%, the Disposal falls    
    within the provision of Rule 14A.32 and is only subject to the reporting  
    and announcement requirements and is exempt from the independent          
    shareholders' approval requirements. Details of the Disposal is           
    accordingly disclosed in this announcement and will be included in the    
    next published annual report of the Company in accordance with Rule       
    14A.45.                                                                   
                                                                              
    DETAILS OF THE DISPOSAL AGREEMENT                                         
                                                                              
    Date:        4 April 2005                                                 
                                                                              
    Parties:                                                                  
                                                                              
    (1)        CTS Cargo acting through its agents, as the vendor; and        
                                                                              
    (2)        CTSIT Management, as the purchasers.                           
                                                                              
    Assets disposed                                                           
                                                                              
    The entire registered capital of SHIEC will be sold under the Disposal    
    Agreement. For further information about SHIEC, please refer to the       
    paragraph headed "Information on SHIEC" below. The CTSIT Management will  
    take up the entire registered capital of SHIEC in the following           
    proportion:                                                               
                                                                              
                    % in SHIEC                                                
    Name        Share of consideration        to be acquired                  
                                                                              
    *(Wang Jia Ao)        RMB2,859,077.54        20%                          
            (approximately HK$2,697,242.96)                                   
                                                                              
    *(Gu Ping Pu)        RMB2,382,540.79        16.6665%                      
            (approximately HK$2,247,679.99)                                   
                                                                              
    *(Zhou Xu Qing)        RMB1,977,480.98        13.833%                     
            (approximately HK$1,865,548.09)                                   
                                                                              
    *(Cai Xian Zhong)        RMB1,977,480.98        13.833%                   
            (approximately HK$1,865,548.09)                                   
                                                                              
    *(Liu Hong)        RMB1,977,695.41        13.8345%                        
            (approximately HK$1,865,750.39)                                   
                                                                              
    *(Dong Wei Zhong)        RMB1,215,107.95        8.5%                      
            (approximately HK$1,146,328.26)                                   
                                                                              
    *(Zhu Zhao Rong)        RMB953,002.02        6.6665%                      
            (approximately HK$899,058.51)                                     
                                                                              
    *(Ma Chuan You)        RMB953,002.02        6.6665%                       
            (approximately HK$899,058.51)                                     
                                                                              
            TOTAL:        RMB14,295,387.69        100%                        
                    (approximately HK$13,486,214.80)                          
                                                                              
    Under the Disposal Agreement, all the earnings of SHIEC for the period    
    commenced from 30 June 2004 will belong to the CTSIT Management           
                                                                              
    Completion                                                                
                                                                              
    After the signing of the Disposal Agreement, the parties will apply for   
    the approval from the relevant State Administration for Industry and      
    Commerce for the transfer contemplated under the Disposal Agreement. The  
    Disposal will be deemed to be completed once such approval is obtained.   
    If such approval cannot be obtained within 2 months from the signing of