10:04 CAPITAL STRAT<00497> - 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. CAPITAL STRATEGIC INVESTMENT LIMITED (Incorporated in Bermuda with limited liability) (Stock Code: 497) RESULTS OF THE SPECIAL GENERAL MEETING HELD ON 6 MAY 2005 The Board is pleased to announce that all the ordinary resolutions proposed at the Special General Meeting were duly passed on 6 May 2005. References are made to the announcements of Capital Strategic Investment Limited (the "Company") dated 8 March 2005, 14 March 2005 and 31 March 2005 respectively. Terms defined in the Company's announcement dated 8 March 2005 and the Company's circular dated 18 April 2005 shall have the same meanings when used herein. The Board is pleased to announce that ordinary resolutions numbered 1 to 4 were duly passed by the Independent Shareholders by way of poll at the Special General Meeting. The branch share registrar of the Company in Hong Kong, Computershare Hong Kong Investor Services Limited was appointed as the scrutineer at the Special General Meeting for the purpose of vote-taking. As at the date of this announcement, 384,540,450 Shares are issued. The total number of Shares entitling the holder to attend and vote for or against ordinary resolutions numbered 1 to 4 at the Special General Meeting was 214,473,200 Shares. There were no restrictions on any Shareholders to attend and vote only against the resolutions at the Special General Meeting. Earnest Equity Limited, Mr. Chung Cho Yee, Mico and parties acting in concert with them have abstained from voting at the Special General Meeting in respect of ordinary resolutions numbered 1 to 4. The poll results of ordinary resolutions numbered 1 to 4 were as follows:- Ordinary resolutions FOR AGAINST Votes (%) Votes (%) Resolution no. 1 to approve the conditional subscription agreement dated 8 March 2005 entered into between the Company and Eisner Investments Limited in relation to the subscription of 25,000,000 new Shares and the transactions in relation thereto. 73,634,750 1,892,000 (97.49%) (2.51%) Resolution no. 2 to approve the conditional subscription agreement dated 8 March 2005 entered into between the Company and New Oval Holdings Limited in relation to the subscription of 40,000,000 new Shares and the transactions in relation thereto. 73,634,750 1,892,000 (97.49%) (2.51%) Resolution no. 3 to approve the conditional subscription agreement dated 8 March 2005 entered into between the Company and Calveston Assets Limited in relation to the subscription of 10,000,000 new Shares and the transactions in relation thereto. 73,634,750 1,892,000 (97.49%) (2.51%) Resolution no. 4 to approve the waiver granted or to be granted by the Executive Director of the Corporate Finance Division of the Securities and Futures Commission in respect of the obligation of Eisner Investments Limited, New Oval Holdings Limited, Calveston Assets Limited, Earnest Equity Limited, Mr. Chung Cho Yee, Mico and any party acting in concert with any of them to make a general offer for all the shares of the Company not already owned or agreed to be subscribed by them and/or any party acting in concert with any of them as a result of completion of any or all of the subscription agreements referred to in resolutions numbered 1, 2 and 3 above. 73,634,750 1,892,000 (97.49%) (2.51%) The Board is also pleased to announce that ordinary resolution numbered 5 to approve the conditional placing agreement dated 8 March 2005 entered into between the Company and Kingsway Financial Services Group Limited in relation to the subscription of 25,000,000 new Shares on a best-efforts basis and the transactions in relation thereto was duly passed by the Shareholders at the Special General Meeting by show of hands.