09:28     CHINAINFO<08206> - Announcement & Resumption of Trading (1)         

    The Stock Exchange of Hong Kong Limited takes no                          
    responsibility for the contents of this announcement,                     
    makes no representations 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.                                                     
                                                                              
    This announcement does not constitute an offer to buy,                    
    or the solicitation of an offer to sell or subscribe                      
    for, any securities or an invitation to enter into                        
    an agreement to do any such things, nor is it                             
    calculated to invite any offer to buy, sell or                            
    subscribe for any securities.                                             
                                                                              
    CHINAINFO HOLDINGS LIMITED                                                
    (Incorporated in the Cayman Islands with limited                          
    liability)                                                                
    (Stock Code: 8206)                                                        
                                                                              
    Placing agent                                                             
                                                                              
    TAI FOOK SECURITIES COMPANY LIMITED                                       
                                                                              
    (1) PLACING OF CONVERTIBLE BONDS;                                         
    (2) PLACING OF EXISTING SHARES; AND                                       
    (3) SUBSCRIPTION FOR NEW SHARES                                           
                                                                              
    CB Placing Agreement                                                      
                                                                              
    On 10 May 2005, the Company entered into the CB Placing                   
    Agreement with the Placing Agent for the placing of                       
    the Convertible Bonds, on a best efforts basis, up                        
    to a maximum principal amount of HK$5 million. The                        
    conversion price of the Convertible Bonds is HK$0.42                      
    per Share (subject to adjustment).                                        
                                                                              
    Completion of the CB Placing is subject to the                            
    fulfillment of certain conditions which include,                          
    inter alia, the granting of the listing of, and                           
    permission to deal in, the Conversion Shares on GEM                       
    by the Listing Committee of the Stock Exchange.                           
                                                                              
    Placing Agreement                                                         
                                                                              
    On 10 May 2005, the Vendor entered into the Placing                       
    Agreement with the Placing Agent for the placing of                       
    up to a maximum of 50 million existing Shares owned                       
    by the Vendor at a price of HK$0.40 per Placing Share                     
    on a best efforts basis. The Placing Price represents                     
    (i) a discount of approximately 2.4% to the closing                       
    price of HK$0.41 per Share as quoted on GEM on 10 May                     
    2005, being the date of the Placing Agreement and the                     
    last trading day of the Shares on GEM prior to the                        
    suspension of the trading in the Shares on GEM pending                    
    the release of this announcement; (ii) a discount of                      
    approximately 2.7% to the average closing price of                        
    approximately HK$0.411 per Share for the last 10                          
    consecutive trading days up to and including 10 May                       
    2005 as quoted on GEM; and (iii) a premium of                             
    approximately 9.6% over the average closing price of                      
    approximately HK$0.365 per Share for the last 30                          
    consecutive trading days up to and including 10 May                       
    2005 as quoted on GEM.                                                    
                                                                              
    Assuming all the 50 million Placing Shares are                            
    successfully placed, the Placing Shares will                              
    represent (i) approximately 12.4% of the existing                         
    issued share capital of the Company; and (ii)                             
    approximately 11.1% of the issued share capital of                        
    the Company as enlarged by the issue of the                               
    Subscription Shares.                                                      
                                                                              
    Subscription Agreement