10:46     INTERCHINA HOLD<00202> - 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.                                                             
                                                                              
    INTERCHINA HOLDINGS COMPANY LIMITED                                       
    (Incorporated in Hong Kong with limited liability)                        
    (Stock Code: 202)                                                         
                                                                              
    DISCLOSEABLE TRANSACTION                                                  
                                                                              
    The Directors are pleased to announce that on 9 May 2005,                 
    Interchina Water Treatment Limited (a subsidiary of the Company           
    which is owned as to 93% by the Company and the remaining                 
    shareholder of which is an Independent Third Party) entered into          
    the Co-operation Agreement with the PRC Party in relation to              
    the Sewage Treatment Plants Project. Pursuant to the                      
    Co-operation Agreement, the Group has been granted an exclusive           
    right to finance, design, construct, own, manage, maintain and            
    operate two sewage treatment plants (the daily capacity of each           
    shall be 40,000 tonnes) in Zhuozhou, Hebei Province, the PRC              
    for 25 years.                                                             
                                                                              
    Pursuant to the Co-operation Agreement, the Group shall                   
    establish the WFOE to develop the Sewage Treatment Plants Project,        
    the registered capital of which shall be approximately                    
    RMB38,000,000 (equivalent to approximately HK$35,849,000). It             
    is proposed by the Group that the total investment of the WFOE            
    be approximately RMB124,539,000 (equivalent to approximately              
    HK$118,000,000), which is based on the approval from the relevant         
    governmental authority of the PRC (being the local government             
    of Bao Ding City (*), the PRC (which also has governance                  
    over Zhuozhou, where the sewage treatment plants will be                  
    situated) )approving the project.                                         
                                                                              
    The PRC Party, which together with its ultimate beneficial owners,        
    are to the best of the Directors' knowledge, information and              
    belief having made all reasonable enquiry, third parties                  
    independent of the Group and connected persons (as defined under          
    the Listing Rules) of the Group.                                          
                                                                              
    The entering into of the Co-operation Agreement constitutes a             
    discloseable transaction of the Company under the Listing Rules.          
    A circular containing, among other matters, details of the                
    transactions contemplated under the Co-operation Agreement and            
    information of the Group will be despatched to the shareholders           
    of the Company within 21 days after the date of this announcement.        
                                                                              
    The Directors are pleased to announce that on 9 May 2005,                 
    Interchina Water Treatment Limited (a subsidiary of the Company           
    which is owned as to 93% by the Company and the remaining                 
    shareholder of which is an Independent Third Party) entered into          
    the Co-operation Agreement with the PRC Party in relation to              
    the Sewage Treatment Plants Project. Pursuant to the                      
    Co-operation Agreement, the Group has been granted an exclusive           
    right to finance, design, construct, own, manage, maintain and            
    operate two sewage treatment plants (the daily capacity of each           
    shall be 40,000 tonnes) in Zhuozhou, Hebei Province, the PRC              
    for 25 years from the date on which the Group has been granted            
    the construction permit (*). The Group's exclusive                        
    right to operate and own the two sewage treatment plants pursuant         
    to the Co-operation Agreement will expire at the end of the               
    25-year period, whereby the right to operate and own the same             
    will be returned to the