09:48     CHI PEOPLE GAS<00681> - Announcement (2)                            

    resigned as independent non-executive Directors. On the same              
    day, Mr. Wang Ke Duan and Mr. Tjia Boen Sien resigned as the              
    Chairman and Deputy Chairman of the Board respectively. Each              
    of them has confirmed that he/she has no disagreement with the            
    Board and there are no matters relating to his/her resignation            
    that needs to be brought to the attention of the holders of the           
    securities of the Company.                                                
                                                                              
    The Board is also pleased to announce that with effect from 11            
    April 2005 immediately following the resignation of the above             
    Directors that (i) Mr. Xu Ruixin, Mr. Liu Jing and Mr. Jin Song           
    have been appointed as executive Directors; and (ii) Mr. Liu              
    Junmin and Mr. Tan Qinglian have been appointed as independent            
    non-executive Directors. Mr. Xu Ruixin has also been appointed            
    as Honourable Chairman of the Board and Mr. Liu Jing has also             
    been appointed as the Chairman of the Board on the same date.             
                                                                              
    Reference is made to the composite offer document regarding the           
    Offers (the "Composite Offer Document") despatched to the                 
    Independent Shareholders and the Independent Optionholders on             
    21 March 2005. Unless the context requires otherwise,                     
    capitalized terms used in this announcement shall have the same           
    meanings as those defined in the Composite Offer Document.                
                                                                              
    A.      CLOSING OF THE OFFERS                                             
                                                                              
    Closing of the Offers and acceptance level                                
                                                                              
    The Offers closed at 4:00 p.m. on 11 April 2005, being the latest         
    time and date for acceptances of the Offers.                              
                                                                              
    As at 4:00 p.m. on 11 April 2005, valid acceptances in respect            
    of a total of 74,282 Shares under the Share Offer, representing           
    approximately 0.003% of the existing issued share capital of              
    the Company and of the voting rights which may be exercised at            
    general meetings of the Company, had been received by Asian               
    Allied. No acceptance in respect of the Option Offer had been             
    received.                                                                 
                                                                              
    Remittance in respect of valid acceptances of the Share Offer             
    will be posted to the relevant Shareholders by ordinary post              
    at their own risk within ten days from the date of receipt by             
    the Registrar of all requisite documents to render such                   
    acceptances valid and complete.                                           
                                                                              
    Shareholdings and public float of Shares                                  
                                                                              
    Immediately before the commencement of the Offers, Asian Allied           
    and parties acting in concert with it held (i) 1,441,724,256              
    Shares, representing approximately 55.14% of the existing issued          
    share capital of the Company; and (ii) Options entitling them             
    to subscribe for 250,000,000 Shares at a subscription price of            
    HK$0.105 per Share.                                                       
                                                                              
    During the period of the Offers from 20 December 2004, being              
    the date the Offers was first announced, to 11 April 2005, save           
    for the acceptance of the 74,282 Shares under the Share Offer,            
    Asian Allied and parties acting in concert with it had not dealt          
    or agreed to deal in any Shares or Options.                               
                                                                              
    Taking into account the nil acceptance in respect of the Option           
    Offer, Asian Allied and parties acting in concert with it held            
    Options entitling them to subscribe for 250,000,000 Shares at             
    a subscription price of HK$0.105 per Share immediately after              
    the closing of the Offers.                                                
                                                                              
    Taking into account the valid acceptances in respect of 74,282            
    Shares under the Share Offer (subject to completion of transfer           
    of those Shares to Asian Allied), Asian Allied and parties acting         
    in concert with it will