09:31     INTERCHINA HOLD<00202> - Announcement (2)                           

    The Board would like to state that as set out in the Announcement,        
    the consideration of the Acquisition (being RMB 150,000,000)              
    was arrived at after arm's length negotiations between the                
    Company and the Counter-parties, by reference to the net assets           
    value of the Target Group as represented by the warranties given          
    by the Counter-parties.                                                   
                                                                              
    The Board would like to state that according to the information           
    provided by the Counter-parties, the registered capital of the            
    Target Company is RMB160,000,000. Accordingly, the                        
    consideration of the Acquisition does represent a discount when           
    compared to the registered capital of the Target Company.                 
                                                                              
    Unusual trading volume                                                    
                                                                              
    The Directors have noted the recent increase in the trading               
    volume of the shares of the Company and wish to state that save           
    for negotiations regarding (i) the Acquisition as set out in              
    the Announcement; (ii) possible co-operation which might involve          
    construction by the Group of a sewage treatment plant with a              
    daily capacity of 80,000 tonnes in Hebei, the PRC; (iii) possible         
    investment by a strategic investor in the water treatment                 
    operations of the Group; (iv) negotiations with Xianyang                  
    Government regarding the future operations of the water                   
    treatment plant project in Xianyang City, Shaanxi Province, the           
    PRC (details of which were disclosed in the announcement of the           
    Company dated 29 October 2003); (v) possible disposal of non-core         
    business of the Group; and (vi) future financing which might              
    involve an element of convertible securities, they are not aware          
    of any reason for such increase.                                          
                                                                              
    The counter-parties to the aforesaid negotiations are, to the             
    best of the Directors' knowledge, information and belief having           
    made all reasonable enquiry, third parties independent of the             
    Group and connected persons (as defined in the Listing Rules)             
    of the Group. As at the date of this announcement, save for the           
    Acquisition, no terms or method of investments or co-operation            
    have been agreed between the Company and the counter-parties.             
    The proposed investments or co-operation may or may not proceed.          
    Further announcement will be made in compliance with the Listing          
    Rules as and when appropriate.                                            
                                                                              
    Shareholders and potential investors are advised to exercise              
    caution when dealing in shares of the Company.                            
                                                                              
    The Directors confirm that save as disclosed above, there are             
    no negotiations or agreements relating to intended acquisitions           
    or realisations which are discloseable under Rule 13.23, neither          
    is the board aware of any matter discloseable under the general           
    obligation imposed by Rule 13.09, which is or may be of a                 
    price-sensitive nature.                                                   
                                                                              
    This announcement is made by the order of the board of the Company,       
    the Directors of which individually and jointly accept                    
    responsibility for the accuracy of this statement.                        
                                                                              
    As at the date of this announcement, the executive Directors              
    are Mr. Zhang Yang, Mr. Chan Wing Yuen, Hubert and Mr. Lam Cheung         
    Shing, Richard, the non-executive Director is Mr. Hui Ho Ming,            
    Herbert, J.P., the independent non-executive Directors are Mr.            
    Lee Peng Fei, Allen, J.P., Mr. Wu Wai Chung, Michael, Mr. Wong            
    Hon Sum and Ms. Ha Ping.                                                  
                                                                              
    By order of the Board of                                                  
    Interchina Holdings Company Limited                                       
    Lam Cheung Shing, Richard                                                 
    Director and Company Secretary                                            
                                                                              
    Hong Kong, 14 April 2005