10:49     INTERCHINA HOLD<00202> - Announcement (4)                           

    the Sewage Treatment Plants Project would help to further expand          
    the Group's environmental and water treatment operations and              
    better utilize the Group's resources. The Directors consider              
    that the Sewage Treatment Plants Project will further expand              
    the Group's revenue base and enhance the Group's competitiveness          
    in the environmental and water treatment business. Upon                   
    completion of the Sewage Treatment Plants Project the daily water         
    treatment capacity of the Group is expected to increase by 80,000         
    tonnes.                                                                   
                                                                              
    The Directors consider that the terms of the Co-operation                 
    Agreement are fair and reasonable and in the interests of the             
    Company and its shareholders as a whole.                                  
                                                                              
    GENERAL                                                                   
                                                                              
    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.        
                                                                              
    As at the date of this announcement, the executive Directors              
    are Mr. Zhang Yang, Mr. Chan Wing Yuen, Hubert and Mr. Lam Cheung         
    Shing, Richard, the non-executive Director is Mr. Hui Ho Ming,            
    Herbert, J.P., the independent non-executive Directors are Mr.            
    Lee Peng Fei, Allen, J.P., Mr. Wu Wai Chung, Michael, Mr. Wong            
    Hon Sum and Ms. Ha Ping.                                                  
                                                                              
    DEFINITIONS                                                               
                                                                              
    In this announcement, the following expressions shall, unless             
    the context requires otherwise, have the following meanings:              
                                                                              
    "Board" the board of Directors                                            
                                                                              
    "Company"       Interchina Holdings Company Limited, a company            
    incorporated in Hong Kong with limited liability whose shares             
    are listed on the Stock Exchange                                          
                                                                              
    "Co-operation   the co-operation agreement dated 9 May 2005               
    entered into between                                                      
      Agreement"    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)             
    and the PRC Party in relation to the Sewage Treatment Plants              
    Project                                                                   
                                                                              
                                                                              
    "Directors"     the directors of the Company                              
                                                                              
    "Group" the Company and its subsidiaries                                  
                                                                              
    "Hong Kong"     the Hong Kong Special Administrative Region of the        
    PRC                                                                       
                                                                              
    "Independent Third      independent third party(ies) who/which,           
    together with its beneficial                                              
      Party(ies)"   owner(s) (if applicable), to the best of the              
    Directors' knowledge, information and belief having made all              
    reasonable enquiry, is/are third party(ies) independent of the            
    Group and connected persons (as defined under the Listing Rules)          
    of the Group                                                              
                                                                              
    "Listing Rules" the Rules Governing the Listing of Securities             
    on the Stock Exchange                                                     
                                                                              
    "PRC"   the People's Republic of China, which for the purpose of          
    this announcement, shall exclude the Macau