09:39     SHANGHAI ELECTRIC GROUP COMPANY LIMITED<02727> - Ann. (1)           

    This announcement is for information purposes only                        
    and does not constitute an invitation or offer to                         
    acquire, purchase or subscribe for securities. This                       
    announcement is not, and is not intended to be, an                        
    offer of securities of Shanghai Electric Group                            
    Company Limited (the "Company") for sale in the United                    
    States. Securities of the Company may not be offered                      
    or sold in the United States absent registration or                       
    an exemption from registration under the United                           
    States Securities Act of 1933, as amended.                                
                                                                              
    The Stock Exchange of Hong Kong Limited (the "Stock                       
    Exchange") and Hong Kong Securities Clearing Company                      
    Limited ("HKSCC") take no responsibility for the                          
    contents of this announcement, make no representation                     
    as to its accuracy or completeness and expressly                          
    disclaim any liability whatsoever for any loss                            
    howsoever arising from or in reliance upon the whole                      
    or any part of the contents of this announcement.                         
                                                                              
    In connection with the Global Offering, Credit Suisse                     
    First Boston (Hong Kong) Limited ("CSFB"), as                             
    stabilizing manager, or any person acting for it, on                      
    behalf of the International Underwriters may                              
    over-allocate or effect transactions with a view to                       
    supporting the market price of the H Shares at a level                    
    higher than that which might otherwise prevail for                        
    a limited period after the commencement of trading                        
    in the H Shares. However, there is no obligation on                       
    CSFB or any person acting for it to conduct any such                      
    stabilizing action. Such stabilization may be                             
    effected in all jurisdictions where it is permissible                     
    to do so, in each case in compliance with all                             
    applicable laws and regulatory requirements,                              
    including the Securities and Futures (Price                               
    Stabilizing) Rules made under the Securities and                          
    Futures Ordinance. Such stabilization, if commenced,                      
    will be conducted at the absolute discretion of the                       
    stabilizing manager or any person acting for it and                       
    may be discontinued at any time, and must be brought                      
    to an end after a limited period. The details of the                      
    intended stabilization and how it will be regulated                       
    under the Securities and Futures Ordinance are                            
    contained in the Prospectus. The number of H Shares                       
    being offered in the Global Offering may be increased                     
    by up to an aggregate of 445,936,000 H Shares through                     
    the exercise of the Over-allotment Option granted to                      
    CSFB by the Company and the Selling Shareholders                          
    exercisable by CSFB on behalf of the International                        
    Underwriters to, amongst other things, cover                              
    over-allocations (if any) in the International                            
    Offering, which option is exercisable at any time from                    
    the day on which trading of the H Shares commences                        
    on the Stock Exchange until 30 days after the last                        
    day for lodging applications under the Hong Kong                          
    Public Offering. In the event that such                                   
    Over-allotment Option is exercised, a press                               
    announcement will be made.                                                
                                                                              
    Unless otherwise defined in this announcement, terms                      
    defined in the prospectus of the Company dated Monday,                    
    April 18, 2005 (the "Prospectus") have the same                           
    meanings when used in this announcement.                                  
                                                                              
    SHANGHAI ELECTRIC GROUP COMPANY LIMITED                                   
    *                                                                         
    (A joint stock limited company incorporated in the                        
    People's Republic of China with limited liability)                        
                                                                              
    GLOBAL OFFERING                                                           
                                                                              
    Number of Offer Shares under    :       2,972,912,000 H                   
    Shares (comprising 2,702,648,000