10:03     CHINA AEROSPACE<00031> - Announcement & Resumption (3)              

    The principal activity of the Company is investment holding and the       
    activities of its principal subsidiaries consist of design,               
    manufacturing and distribution of printed circuit boards, plastic         
    moulding products, LCD and intelligent battery chargers.                  
                                                                              
    To the best of the Directors' knowledge, the principal business           
    activity of the Purchaser is property investment.                         
                                                                              
    GENERAL                                                                   
                                                                              
    The Disposal constitutes a major transaction of the Company under         
    Chapter 14 of the Listing Rules. A shareholders' circular containing,     
    amongst other things, further details relating to the Disposal will be    
    dispatched to the shareholders of the Company as soon as practicable.     
                                                                              
    SUSPENSION AND RESUMPTION OF TRADING                                      
                                                                              
    At the request of the Company, trading in the shares of the Company has   
    been suspended from 9:30 a.m. on 5 May 2005. Application has been made    
    by the Company to the Stock Exchange for the resumption of trading in     
    the shares of the Company on the Stock Exchange with effect from 9:30     
    a.m. on 9 May 2005.                                                       
                                                                              
    DEFINITIONS                                                               
                                                                              
    "1997 Memorandum"  means the memorandum of agreement and a supplement     
    both dated 28 January 1997 (as amended by letter dated 13 July 1999)      
    between Premier Property Limited, Cheung Kong (Holdings) Limited (both    
    are Independent Third Parties) and the Vendor, whereby the parties        
    agreed to jointly develop the Property;                                   
                                                                              
    "Board"  means the board of Directors of the Company;                     
                                                                              
    "Company"  means China Aerospace International Holdings Limited, a        
    company incorporated in Hong Kong with limited liability;                 
                                                                              
    "Deed of Release"  means a deed of release to be executed by Premier      
    Property Limited, Cheung Kong (Holdings) Limited and the Vendor on        
    completion of the sale and purchase of the Property whereby they will     
    each thereby release, discharge and waive their respective rights to      
    pursue any claims against each other under the 1997 Memorandum and any    
    matters howsoever arising connected therewith;                            
                                                                              
    "Directors"  means the directors of the Company;                          
                                                                              
    "Disposal"  means the disposal of the Property by the Vendor in favour    
    of the Purchaser in accordance with the terms of the Memorandum of        
    Agreement;                                                                
                                                                              
    "EGM"  means an extraordinary general meeting of the Company to be        
    convened;                                                                 
                                                                              
    "Excluded Car Parking Spaces"  means the following car parking spaces     
    located within the Property and not owned by the Vendor:                  
                                                                              
      (1)  Private Car Parking Spaces Nos.1, 2, 3, 4, 5, 6, 15 and 16 on      
    the Upper Basement;                                                       
                                                                              
      (2)  Lorry Car Parking Space No.1 on the Upper Basement;                
                                                                              
      (3)  Car Park No.L02 on the Upper Basement; and,                        
                                                                              
      (4)  Lorry Car Parking Space Nos.3, 4, 5 and 6 on the Upper Basement;   
                                                                              
    "Formal Agreement"  means the formal agreement for the sale by the        
    Vendor and purchase by the Purchaser of the Property to be executed on    
    or before 13 May 2005;                                                    
                                                                              
    "Group"  means the Company and all its subsidiaries;                      
                                                                              
    "HK$"  means Hong Kong Dollars, the lawful currency of Hong Kong;         
                                                                              
    "Hong Kong"  means the Hong Kong Special Administrative Region of the     
    People's Republic of China;                                               
                                                                              
    "Independent Non-Executive Directors"  means the independent              
    non-executive directors of the Company, comprising Mr. Lee Hung Sang,     
    Mr. Chow Chan Lum, Charles and Mr. Luo Zhengbang;                         
                                                                              
    "Independent Third Party(ies)"  means persons who are not connected       
    persons (as defined in the Listing Rules) of the Company and are third    
    parties independent of and not connected with the Company or its          
    connected persons (as defined in the Listing Rules);