09:53     CAPITAL STRAT<00497> - Announcement (2)                             

    assets of the                consolidated net    consolidated net         
            Group as at        Estimated net         tangible assets          
    tangible assets                                                           
            30 September 2004        proceeds        of the Group             
    per Share                                                                 
            (Note 1)        (Note 2)        (Note 3)        (Note 4)          
            HK$'000        HK$'000        HK$'000        HK$'000              
                                                                              
    Based on the completion of                                                
      the Subscription Agreements                                             
      with the Subscription Price of                                          
      HK$1.08 per Share     745,344     79,500     824,844   1.79             
                                                                              
    Based on the completion of                                                
      the Placing Agreement with                                              
      the Subscription Price of                                               
      HK$1.08 per Share     745,344     25,500     770,844   1.88             
                                                                              
    Based on the completion                                                   
      of the Subscription                                                     
      Agreements and                                                          
      the Placing Agreement                                                   
      with the Subscription Price of                                          
      HK$1.08 per Share     745,344     106,500    851,844   1.76             
                                                                              
    Notes:                                                                    
                                                                              
    1.        As at 30 September 2004, the unaudited consolidated net         
    asset value of the Group included a negative goodwill arising on          
    acquisition of associates amounted to approximately HK$3,440,000.         
    Therefore, it is considered as intangible asset and was adjusted to       
    the unaudited consolidated net asset value of the Group as at             
    30 September 2004.                                                        
                                                                              
    2.        The estimated net proceeds from the issue of the                
    Subscription and the Placing are based on the Subscription Price of       
    HK$1.08 per Share after deducting the related expenses (such as           
    professional fees and printing costs) of approximately HK$1.5 million     
    and assuming no outstanding Options are exercised on or before            
    Completion.                                                               
                                                                              
    3.        Considering the valuation of the Group's investment             
    properties as at 28 February 2005 as set out in Appendix II to the        
    Circular, there were valuation surplus arising on the revaluation of      
    the investment properties and properties held for sale amounted to        
    approximately HK$147,296,000 and HK$30,991,000 respectively which have    
    not been included in the statement of unaudited pro forma consolidated    
    net tangible assets of the Group as at 30 September 2004.                 
                                                                              
    4.        The unaudited pro forma consolidated net tangible assets per    
    Share is arrived at after the adjustment referred to in the preceding     
    paragraph and on the basis that: (i) 384,540,450 Shares are in issue      
    and 75,000,000 Shares are to be issued pursuant to the completion of      
    the Subscription; (ii) 384,540,450 Shares are in issue and 25,000,000     
    Shares are to be issued pursuant to the completion of the Placing; and    
    (iii) 384,540,450 Shares are in issue and 100,000,000 Shares are to be    
    issued pursuant to the completion of the Subscription and the Placing.    
                                                                              
            By order of the Board                                             
            Capital Strategic Investment Limited                              
            Ma Wai Man, Catherine                                             
            Company Secretary                                                 
                                                                              
    Hong Kong, 18 April 2005                                                  
                                                                              
    As at the date of this announcement, Mr. Choo Yeow Ming and Ms. Ma Wai    
    Man, Catherine are the executive Directors; Mr. Chung Cho Yee, Mico is    
    a non-executive Director; and Messrs. Liu Yeau-Hwan, Pete, Wong Sin       
    Just, Lam Lee G. and Cheng Yuk Wo are the independent non-executive       
    Directors.                                                                
                                                                              
    The Directors jointly and severally accept full responsibility for the    
    accuracy of the information contained in this announcement and            
    confirm, having made all reasonable enquiries, that to the best of        
    their knowledge, opinions expressed in this announcement have been        
    arrived at after due and careful consideration and there are no other     
    facts not contained in this announcement, the omission of which would     
    make any statement in this announcement misleading.