09:39     COFCO INTL<00506> - Announcement (1)                                

    The Stock Exchange of Hong Kong Limited takes no responsibility           
    for the contents of this announcement, makes no representation            
    as to its accuracy or completeness and expressly disclaims any            
    liability whatsoever for any loss howsoever arising from or in            
    reliance upon the whole or any part of the contents of this               
    announcement.                                                             
                                                                              
                                                                              
    COFCO INTERNATIONAL LIMITED                                               
    (Incorporated in Bermuda with limited liability)                          
    (Stock Code: 506)                                                         
                                                                              
    DISCLOSEABLE AND CONTINUING CONNECTED TRANSACTIONS                        
                                                                              
    The Board announces that certain members of the Group in the              
    PRC have placed certain cash deposits and other kinds of deposits         
    with COFCO Finance during the Relevant Period.                            
                                                                              
    According to Rules 14.33 and 14A.35 of the Listing Rules, such            
    placing of cash deposits and other kinds of deposits by the Group         
    with COFCO Finance in aggregate constituted discloseable and              
    continuing connected transactions of the Company and should have          
    been subject to the relevant reporting and shareholders approval          
    requirements under the Listing Rules. In addition, disclosure             
    on such deposits should also have been made under Rule 13.13              
    of the Listing Rules.                                                     
                                                                              
    As such deposits were separately placed by some 15 members of             
    the Group in different provinces of the PRC directly with COFCO           
    Finance and the outstanding balance of all deposits fluctuated            
    from time to time during the Relevant Period, substantial time            
    was required to gather the relevant financial information and             
    documents in relation to such deposits and the Company had not            
    been able to ascertain the actual aggregate amount of the daily           
    outstanding balances until recently. Hence, such placing of cash          
    deposits had not been made the subject of an announcement or              
    proposed for shareholders approval or reviewed by the                     
    independent non-executive Directors earlier as required by the            
    Listing Rules. The Stock Exchange has indicated that it will              
    follow up on the compliance issues.                                       
                                                                              
    After becoming aware of the actual aggregate amount involved,             
    the Company procured relevant members of the Group to withdraw            
    all these deposits from COFCO Finance and place them with                 
    commercial banks. On demand COFCO Finance immediately released            
    all the deposits placed by the Group on 11 March 2005. COFCO              
    Finance has fully fulfilled its contractual obligations under             
    the terms of the transactions. The Group suffered no damage or            
    loss in relation to the deposits and the withdrawal thereof.              
                                                                              
    Since the withdrawal of the deposits and as at the date of this           
    announcement, there have been no deposits placed by any member            
    of the Group with COFCO Finance. If the Company decides to place          
    deposits with COFCO Finance again in the future, all relevant             
    provisions of the Listing Rules will be complied with.                    
                                                                              
    PLACING OF CASH DEPOSITS AND OTHER KINDS OF DEPOSITS                      
                                                                              
    The Board announces that some 15 members of the Group in different        
    provinces of the PRC separately placed cash deposits, notice              
    deposits and deposits by agreements, all in RMB, directly with            
    COFCO Finance during the Relevant Period. The maximum aggregate           
    daily outstanding balance of all deposits (including accrued              
    interest) had not exceeded RMB88,854,379.81, RMB337,915,609.64,           
    RMB651,486,835.51 and RMB457,054,922.67 (approximately                    
    HK$83,824,886.61, HK$318,788,310.98, HK$614,610,222.18 and                
    HK$431,183,889.31 respectively) for the three