10:34     <00275> & <00235>-Joint Ann. & <00235> Resumed (2)                  

    The distribution in specie of the GDI Shares will be effected by way      
    of distribution from the special capital reserve account of China         
    Strategic of an amount equivalent to the carrying value of GDI, which     
    will be ascertained immediately prior to completion of the China          
    Strategic Group Reorganisation. No application will be made for the       
    listing of the GDI Shares on the Stock Exchange or any other stock        
    exchange.                                                                 
                                                                              
    The China Strategic Group Reorganisation is conditional on, among         
    other things, completion of the Capital Reorganisation and the            
    approval by the Independent China Strategic Shareholders being            
    obtained. It is, however, not subject to completion of the Share Sale     
    Agreement having taken place.                                             
                                                                              
    Capital Reorganisation                                                    
                                                                              
    The Capital Reorganisation involves the Capital Reduction, the            
    Subdivision and the Share Consolidation. The Capital Reduction will       
    involve cancellation of the paid-up capital of HK$0.05 on each issued     
    China Strategic Share and reduction in the nominal value of each          
    issued China Strategic Share from HK$0.10 to HK$0.05. The Capital         
    Reduction also involves the cancellation of the entire share premium      
    account of China Strategic. The Subdivision involves the subdivision      
    of each authorised but unissued China Strategic Share into two Reduced    
    China Strategic Shares of HK$0.05 each. The Share Consolidation will      
    then be implemented to consolidate every two Reduced China Strategic      
    Shares of HK$0.05 each into one Consolidated China Strategic Share of     
    HK$0.10.                                                                  
                                                                              
    The Capital Reorganisation is subject to fulfilment of the conditions     
    as detailed below.                                                        
                                                                              
    Change of board lot size                                                  
                                                                              
    The China Strategic Board also proposes to change the board lot size      
    for trading from 2,500 China Strategic Shares to 5,000 Consolidated       
    China Strategic Shares upon the Capital Reorganisation having become      
    effective.                                                                
                                                                              
    Possible voluntary offer for the GDI Shares                               
                                                                              
    Subject to the approval by the Independent Hanny Shareholders of the      
    GDI Offer and completion of the China Strategic Group Reorganisation,     
    Somerley, on behalf of Well Orient (an indirect wholly-owned              
    subsidiary of Hanny), will make a voluntary offer to the shareholders     
    of GDI to acquire all the GDI Shares, other than those then owned or      
    agreed to be acquired by Well Orient, its associates and parties          
    acting in concert with it (but the GDI Offer will be extended to Paul     
    Y), on the following basis:                                               
                                                                              
    Option 1:                                                                 
                                                                              
    For every five GDI Shares *        one Hanny Share plus HK$1.8 in cash    
                                                                              
    Option 2:                                                                 
                                                                              
    For every five GDI Shares *        one Hanny Bond with face value of      
    HK$15.0                                                                   
                                                                              
    *        The GDI Shares will be issued based on the number of the         
    Consolidated China Strategic Shares in issue on the Record Date.          
                                                                              
    Independent China Strategic Shareholders and Paul Y can either accept     
    Option 1 or Option 2, but not a combination of both, in respect of the    
    GDI Offer.                                                                
                                                                              
    Share Sale Agreement and possible mandatory offer for the China           
    Strategic Shares                                                          
                                                                              
    The China Strategic Board has been informed by Paul Y and Hanny that      
    they have entered into the Share Sale Agreement with the Offeror on       
    10th March, 2005 pursuant to which and subject to, inter alia, the        
    implementation of the China Strategic Group Reorganisation in full,       
    the Offeror agreed to acquire 135,000,000 China Strategic Shares          
    (equivalent to 67,500,000 Consolidated China Strategic Shares upon the    
    Capital Reorganisation having become effective) from each of Paul Y       
    and Hanny, which shares represent approximately an aggregate of           
    approximately 30.6% of the issued share capital of China Strategic,       
    for an aggregate consideration of HK$52,110,000, equivalent to            
    HK$0.193 per China Strategic Share (or HK$0.386 per Consolidated China    
    Strategic Share).                                                         
                                                                              
    Subject to completion of the Share Sale Agreement, Kingston will, on