10:05     <00508> & <00025> - Joint Announcement & <00508> Resume (3)         

    50% of the Escrow Amount, together with interest accrued                  
    thereon, less any deduction or compensation as aforesaid will             
    be released to the Warrantor on the later of (i) 28 days from             
    the date of issuance of the audited consolidated financial                
    statements of the Pacific Coffee Group for the eleven months              
    ended 28th February, 2005 (and if such date is not a Business             
    Day, then the following Business Day) and (ii) two months                 
    after the date of completion of the Agreement, provided that              
    such date is no later than 30th November, 2005. The balance of            
    any remaining sum of the Escrow Amount will be released to the            
    Warrantor on the earlier of (i) 31st July, 2006 and (ii) the              
    date of issuance of the audited financial statement of Pacific            
    Coffee and its then subsidiaries for the period commencing                
    from 1st April, 2005 and ending 31st March, 2006 (and if such             
    date is not a Business Day, then the following Business Day).             
                                                                              
    Completion                                                                
    Completion of the Agreement shall take place on 20th May, 2005            
    or any other date as may be agreed between Mr. Neir, on behalf            
    of the Vendors, and CIL.                                                  
                                                                              
    BACKGROUND TO AND REASONS FOR THE ACQUISITION                             
    The Board was approached by Anglo Chinese Corporate Finance,              
    Limited, the financial adviser to the Vendors in January 2005             
    regarding an investment opportunity in Pacific Coffee. After              
    carrying out financial and legal due diligence on the                     
    businesses of Pacific Coffee, the CiTL Group commenced                    
    negotiations with the Vendors in acquiring the entire issued              
    share capital of Pacific Coffee. The Agreement was reached                
    between the parties to the Agreement on 6th April, 2005.                  
                                                                              
    The businesses of the CiTL Group have been deteriorating which            
    is reflected by the diminishing turnover of the CiTL Group in             
    the recent years. The Boards of both CiTL and CIHL consider               
    the Acquisition not only enables the CiTL Group to capture the            
    fast growing and lucrative specialty coffee business in Hong              
    Kong, the PRC and neighbouring countries, it also enables the             
    CiTL Group to diversify its businesses and broaden its income             
    stream.                                                                   
                                                                              
    The respective Boards of CiTL and CIHL consider the terms of              
    the Acquisition, including the consideration, are fair and                
    reasonable and the Acquisition is beneficial to CiTL and CIHL             
    and their respective shareholders.                                        
                                                                              
    OTHER INFORMATION                                                         
    CiTL is an investment holding company which, through its                  
    subsidiaries, is principally engaged in the trading and                   
    servicing of computer and business machines, provision of                 
    network system and solution services, provision of technical              
    and maintenance services and investment in securities. Under              
    the Agreement, Mr. Neir, who is the chief executive officer               
    and a director of Pacific Coffee, has undertaken to use his               
    best endeavours to ensure that the employment contracts of                
    certain key employees of Pacific Coffee shall include a                   
    provision requiring six months notice of termination. The                 
    management of CiTL believes that such provision mitigates any             
    possible disruption to the operation of Pacific Coffee due to             
    the change of control. In the event of any resignation of key             
    employees, CiTL would have sufficient time to recruit                     
    appropriate and competent replacement.                                    
                                                                              
    CIHL is an investment holding company which, through its                  
    subsidiaries, is principally engaged in the business of                   
    construction and engineering, insurance and investment,                   
    property investment, hotel investment and information                     
    technology.