10:09 CHINA SPECIAL STEEL HOLDINGS COMPANY LIMITED<02889>-Ann. (5) Subject to the terms and conditions set out in the Prospectus and the application forms, completed WHITE and YELLOW application forms must be received by no later than 12:00 noon on Thursday, 12 May, 2005 (or such later date as may apply in the case of a tropical cyclone warning signal No. 8 or above or a ``black'' rainstorm warning being in force in Hong Kong as described under ``Effect of bad weather on the opening of the application lists'' in the section headed ``How to apply for the Public Offer Shares'' in the Prospectus). Announcement of the Offer Price, indication of the level of interest in the International Offering and the application results and basis of allocation of the Public Offer Shares (with successful applicants' identification document numbers) will be published in the South China Morning Post (in English) and the Hong Kong Economic Times (in Chinese) on Wednesday, 18 May, 2005. The International Offering comprises the Public Offer and the Placing. The 180,000,000 Offer Shares initially offered will comprise 162,000,000 Offer Shares being offered under the Placing and 18,000,000 Offer Shares being offered under the Public Offer. The 180,000,000 Offer Shares being offered under the International Offering will represent 36% of the Company's enlarged share capital immediately after completion of the International Offering. Under the Public Offer, the Company is initially offering 18,000,000 Offer Shares (subject to reallocation between the Placing and the Public Offer in the case of over-subscription in the Public Offer), for subscription by the public in Hong Kong. For allocation purposes only, the 18,000,000 Shares initially available for subscription under the Public Offer, will be divided into two pools of 9,000,000 Shares each: pool A and pool B. The Shares in pool A will be allocated on an equitable basis to applicants who have applied for Shares with an aggregate subscription price of HK$5,000,000 (excluding the amounts of brokerage fee, the SFC transaction levy, the SFC investor compensation levy and the Stock Exchange trading fee payable thereon) or less. The Shares in pool B will be allocated on an equitable basis to applicants who have applied for Shares with an aggregate subscription price of more than HK$5,000,000 (excluding the brokerage fee, the SFC transaction levy, the SFC investor compensation levy and the Stock Exchange trading fee payable thereon) and up to the total value of pool B. Applicants should be aware that applications in different pools, as well as applications in the same pool (depending on the number of Offer Shares applied for), may receive different allocation ratios. If one of the pools in undersubscribed, the surplus Offer Shares in that pool will be transferred to the other pool to satisfy demand in the other pool and be allocated accordingly. Applicants can only receive an allocation of Offer Shares from either pool A or pool B but not from both pools. The Company has granted Cazenove the Over-allotment Option which is exercisable at any time no later than 30 days from the last day for the lodging of application under the Public Offer. Pursuant to the Over-allotment Option, Easyman Assets Management Limited may be required to sell up to an aggregate of 27,000,000 Shares (representing 15% of the number of Shares initially being offered under the International Offering) to cover over-allocations in the Placing. Further announcement will be made when the Over-allotment Option is exercised. Applications for the Public Offer Shares should only be made and will only be considered for acceptance on the basis set out in the Prospectus if made on the prescribed WHITE or YELLOW application forms. It should be noted that multiple or suspected multiple applications or application for more than 9,000,000 Offer Shares, being 50% of the Public Offer Shares initially being offered to the public, will be rejected. Only one application on a WHITE or YELLOW application form may be made for the benefit of any person. Applicants are required to undertake and confirm that they or the person(s) for whose benefit the application is being made have not applied for, indicated an interest in or taken up and will not apply for, indicate an interest in or take up Offer Shares under the Placing. As at the date of this announcement, (a) the executive Directors are Mr. Dong Shutong, Mr. He Weiquan, Mr. You Jinzhou, Ms. Lee Han Yau, Florence and Mr. Song Wenzhou; (b) the non-executive Director is Mr. Yang Tianjun, and (c) the independent non-executive Directors are Mr. Bai Baohua, Mr. Huang Changhuai and Mr. Wong Chi Keung. By Order of the Board China Special Steel Holdings Company Limited Dong Shutong Chairman Hong Kong, 9 May, 2005