10:15     CHINA RICH HOLD<01191> - Announcement (2)                           

    lapse of the Rights Issue. It is expected that the Share Consolidation    
    will become effective on Monday, 13th June, 2005. Dealings in the         
    Consolidated Shares on the Stock Exchange is expected to commence on      
    Monday, 13th June, 2005.                                                  
                                                                              
    Reasons for the Share Consolidation                                       
                                                                              
    The Share Consolidation will increase the nominal value of the            
    Reorganized Shares and their trading price per board lot. Therefore,      
    despite the considerations set out in the Announcement, the Directors     
    are of the view that the Share Consolidation is in the best interests of  
     the Company and recommend the Shareholders to vote in favour of the      
    resolution for approval of the Share Consolidation at the SGM because     
    the Share Consolidation will reduce the transaction and handling costs    
    of the Company and the Shareholders whose then existing shares            
    ("Shares") of the Company Shares are held through CCASS.                  
                                                                              
    Application for listing                                                   
                                                                              
    Application has been made to the Stock Exchange for the granting of the   
    listing of, and permission to deal in, the Consolidated Shares in issue   
    upon the Share Consolidation becoming effective.                          
                                                                              
    Subject to the granting of the listing of, and permission to deal in,     
    the Consolidated Shares on the Stock Exchange, the Consolidated Shares    
    will be accepted as eligible securities by Hong Kong Securities Clearing  
     Company Limited ("HKSCC") for deposit, clearance and settlement in       
    CCASS with effect from the commencement date of dealings in the           
    Consolidated Shares on the Stock Exchange or such other date as           
    determined by HKSCC. Settlement of transactions between participants of   
    the Stock Exchange on any trading day is required to take place in CCASS  
     on the second trading day thereafter. All activities under CCASS are     
    subject to the General Rules of CCASS and CCASS Operational Procedures    
    in effect from time to time.                                              
                                                                              
    Arrangement on odd lot trading                                            
                                                                              
    In order to facilitate the trading of odd lots (if any) of the            
    Consolidated Shares, the Company has appointed Hantec International       
    Finance Group Limited to stand in the market to match the purchase and    
    sale of odd lots of the Consolidated Shares at the relevant market price  
    per Consolidated Share for the period from Monday, 27th June, 2005 to     
    Monday, 18th July, 2005 (both dates inclusive). Holders of odd lots of    
    the Consolidated Shares who wish to take advantage of this facility       
    either to dispose of their odd lots of the Consolidated Shares or to top  
    up to a full board lot may contact Mr Leung Siu Wa of Hantec              
    International Finance Group Limited at 45th Floor, COSCO Tower, 183       
    Queen's Road Central, Hong Kong at 2235 7801 during aforesaid period.     
    Holders of odd lots of the Consolidated Shares should note that the       
    matching of the sale and purchase of odd lots of the Consolidated Shares  
    is not guaranteed.                                                        
                                                                              
    Trading arrangement for the Consolidated Shares                           
                                                                              
    Subject to the Share Consolidation becoming unconditional, the            
    arrangements proposed for dealings in the Consolidated Shares are         
    expected to be as follows:                                                
                                                                              
    (i)   From Monday, 13th June, 2005, the original counter for trading in   
    the Reorganized Shares will be temporarily closed and a temporary         
    counter for trading in the Consolidated Share in board lots of 400        
    Consolidated Shares will be set up.                                       
                                                                              
    (ii)   With effect from Monday, 27th June, 2005, the original counter     
    for trading in the Consolidated Shares will be reopened for trading       
    Consolidated Shares in board lots of 2,000 Consolidated Shares.           
                                                                              
    (iii)   During Monday, 27th June, 2005 to Monday, 18th July, 2005 (both   
    dates inclusive), there will be parallel trading at the above two         
    counters.                                                                 
                                                                              
    (iv)   The temporary counter for trading in the Consolidated Shares in    
    board lots of 400 Consolidated Shares will be removed after the close of  
    trading on Monday, 18th July, 2005. Thereafter, trading will be in        
    board lots of 2,000 Consolidated Shares only and the existing             
    certificates for the Shares will cease to be marketable and will not be   
    acceptable for dealing and settlement purposes. However, such             
    certificates will remain effective as documents of title on the basis of  
    five Shares for one Consolidated Shares.                                  
                                                                              
    Free exchange of share certificates                                       
                                                                              
    Shareholders may exchange their certificates for the Shares for new       
    certificates for the Consolidated Shares on or after Monday, 13th June,   
    2005. This may be done free of charge by delivering the certificates for