11:00     SHANGHAI PECHEM<00338> - Announcement (17)                          

    5.                                                                        
    GENERAL INFORMATION                                                       
    The Company is a highly integrated entity which processes crude oil       
    into synthetic fibres, resins, plastics, intermediate petrochemicals      
    and petroleum products.                                                   
                                                                              
    6.                                                                        
    APPROVAL PROCEDURES                                                       
    6.1                                                                       
    The Continuing Connected Transactions were approved by the Directors      
    at the 22nd meeting of the fourth session of the Board. Directors Mr.     
    Liu Wenlong and Mr. Zhang Baojian who were deemed interested in these     
    transactions abstained from voting at the meeting of Board.               
                                                                              
    6.2                                                                       
    Prior to the approval by the Board, information relating to the           
    Continuing Connected Transactions were submitted to independent           
    non-executive directors for review and approval. Independent              
    non-executive directors of the Company considered the above               
    transactions were carried out in the normal course of business and        
    conducted in accordance with market principles. The prices related to     
    the connected transactions were determined on the basis of the market     
    prices and were fair and reasonable. The Continuing Connected             
    Transactions and the relevant agreements complied with the market         
    principles on a fair and reasonable basis and nothing contained           
    therein was contrary to the interests of the Company and its minority     
    shareholders.                                                             
                                                                              
    6.3                                                                       
    The Continuing Connected Transactions will be subject to approval at      
    the annual general meeting. Shareholders who are interested in the        
    Continuing Connected Transactions will abstain from voting at the         
    annual general meeting.                                                   
                                                                              
    7.                                                                        
    DOCUMENTS AVAILABLE FOR INSPECTION                                        
    7.1                                                                       
    Agenda and resolutions for the 22nd meeting of the fourth session of      
    the Board;                                                                
                                                                              
    7.2                                                                       
    Opinions provided by independent non-executive directors; and             
    7.3                                                                       
    Copies of the connected transaction contracts for past years.             
    8.                                                                        
    DEFINITIONS                                                               
    In this announcement, unless the context otherwise requires the           
    following expressions have the following meanings                         
                                                                              
    `associate'                    has the meaning given to it                
                                   by the Hong Kong Listing                   
                                   Rules                                      
    `Board'                        the board of directors of the              
                                   Company                                    
    `CBRC'                         hina Banking Regulatory                    
                                   Commission                                 
    `China Petrochemical           a wholly State-owned company               
    Corporation'                   organized in the PRC                       
    `China Petroleum & Chemical    a company organised in the                 
    Corporation'                   PRC and listed on the Main                 
                                   Board of the Hong Kong Stock               
                                   Exchange as well as in New                 
                                   York, London and Shanghai.                 
    `Company'                      Sinopec Shanghai                           
                                   Petrochemical Company                      
                                   Limited, a company organized               
                                   in the PRC and listed on the               
                                   Main Board of the Hong Kong                
                                   Stock Exchange as well as in               
                                   Shanghai and New York                      
    `Continuing Connected          the on-going connected                     
    Transactions'                  transactions to be conducted               
                                   by the Company and China                   
                                   Petrochemical Corporation and              
                                   its associates in respect of               
                                   (i) purchases by the Company               
                                   of raw materials, (ii) sales               
                                   by the Company of petroleum                
                                   products, (iii) sales by the               
                                   Company of petrochemical                   
                                   products, (iv) agency sales                
                                   by the Company of                          
                                   petrochemical products, (v)                
                                   provision by China                         
                                   Petrochemical Corporation of               
                                   transportation services,                   
                                   provision by China                         
                                   Petrochemical Corporation of               
                                   design and construction                    
                                   services, provision by China               
                                   Petrochemical Corporation of               
                                   insurance services and                     
                                   provision by China