10:07     CHINA SPECIAL STEEL HOLDINGS COMPANY LIMITED<02889>-Ann. (1)        

    Not for publication, distribution or release in the United States         
    (as defined in Regulation S of the U.S. Securities Act of 1933, as        
    amended), the United Kingdom, Singapore, Italy, Germany and France.       
                                                                              
    The information contained herein does not constitute an offer of          
    securities for sale in the United States. Securities may not be           
    offered or sold in the United States unless they are registered           
    under applicable law or are exempt from registration. No public           
    offering of securities will be made in the United States.                 
                                                                              
    Unless the context requires otherwise, the use of capitalised terms       
    here shall have the same meanings as defined in the prospectus (the       
    ``Prospectus'') of China Special Steel Holdings Company Limited           
    (the ``Company'') dated 9 May, 2005.                                      
                                                                              
    This announcement is for information purpose only and does not            
    constitute an invitation or offer to acquire, purchase or subscribe       
    for securities. Prospective investors should read the Prospectus          
    issued by the Company for detailed information about the                  
    International Offering described below before deciding whether or         
    not to invest in the Shares thereby being offered.                        
                                                                              
    The Stock Exchange of Hong Kong Limited (the ``Stock Exchange'')          
    and Hong Kong Securities Clearing Company Limited (``HKSCC'') take        
    no responsibility for the contents of this announcement, make no          
    representation as to its accuracy or completeness and expressly           
    disclaim any liability whatsoever for any loss howsoever arising          
    from or in reliance upon the whole or any part of the contents of         
    this announcement.                                                        
                                                                              
    Prospective investors in the Public Offer Shares should note that         
    the Public Offer Underwriters are entitled to terminate their             
    obligations under the Public Offer Underwriting Agreement by notice       
    in writing to the Company given by Cazenove, acting for themselves        
    and on behalf of the other Public Offer Underwriters, upon the            
    occurrence of any of the events set forth under ``Grounds for             
    termination'' in the section headed ``Underwriting'' in the               
    Prospectus at any time prior to 8:00 a.m. on the Listing Date.            
    Prospective investors should note that in connection with the             
    International Offering, Cazenove, as stabilising manager, or any          
    person acting for them, may over-allocate or effect any other             
    transactions with a view to stabilising or maintaining the market         
    price of the Shares at a level higher than that which might otherwise     
    prevail in the open market for a limited period after the last day        
    for the lodging of applications under the Public Offer. However,          
    there is no obligations on Cazenove or any person acting for it to        
    conduct any such stabilising action. Such stabilisation action may        
    be effected in all jurisdictions where it is permissible to do so,        
    in each case in compliance with all applicable laws and regulatory        
    requirements, including the Securities and Futures (Price                 
    Stabilizing) Rules, as amended, made under the SFO. Such                  
    stabilisation, if commences, will be conducted at the absolute            
    discretion of Cazenove or any person acting for it and may be             
    discontinued at any time, and must be brought to an end after a           
    limited period. Details of the over-allotment and stabilisation           
    action which may be taken by the Cazenove are contained in the            
    Prospectus.                                                               
                                                                              
    China Special Steel Holdings Company Limited                              
     (incorporated in the Cayman Islands with limited liability)              
                                                                              
    INTERNATIONAL OFFERING                                                    
                                                                              
    Number of Shares under the International Offering : 180,000,000           
    (subject to Over-allotment Option)                                        
    Number of Placing Shares : 162,000,000 (subject to reallocation and       
    Over-allotment Option)                                                    
    Number of Public Offer Shares : 18,000,000 (subject to                    
    reallocation)                                                             
    Offer price : not more than HK$1.85 per Offer Share                       
     (payable in full on application and subject to refund) and               
     expected to be not less than HK$1.48 per Offer Share                     
    Nominal value : HK$0.10 per Share                                         
    Stock Code : 2889                                                         
                                                                              
    Global Coordinator, Bookrunner, Sponsor and Lead Manager                  
                                                                              
    Cazenove Asia Limited