10:53     CHENGDU PUTIAN<01202> - 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.                   
                                                                              
                                                                              
                                                                              
                                                                              
    Chengdu PUTIAN Telecommunications Cable Company Limited                   
    (a sino-foreign joint stock limited company incorporated in the           
    People's Republic of China with limited liability)                        
                                                                              
    (Stock Code: 1202)                                                        
                                                                              
    Discloseable and Connected Transaction                                    
                                                                              
                                                                              
    SALE AND PURCHASE AGREEMENT                                               
                                                                              
    Pursuant to the Sale and Purchase Agreement, the Company and              
    Shuangliu, a 66.67% owned subsidiary of the Company, have agreed to       
    acquire 20% and 10% of the equity interest of Chengdu MCIL,               
    respectively from MCIL for a consideration of RMB5,733,334                
    (approximately HK$5,408,805.66) and RMB2,866,666 (approximately HK        
    $2,704,401.89), respectively. Upon completion of the Sale and Purchase    
    Agreement, the Company and Shuangliu will own 90% and 10% of the          
    equity interest of Chengdu MCIL, respectively.                            
                                                                              
    DISCLOSEABLE AND CONNECTED TRANSACTION                                    
                                                                              
    As at the date of the Sale and Purchase Agreement, MCIL owns 30% of       
    the equity interest of Chengdu MCIL and therefore MCIL is a connected     
    person of the Company under the Listing Rules.  Accordingly, the Sale     
    and Purchase Agreement constitutes a connected transaction for the        
    Company under the Listing Rules.  As each of the percentage ratios (as    
    defined in Rule 14.07 of the Listing Rules) is less than 25% and the      
    aggregate consideration under the Sale and Purchase Agreement, being      
    RMB8,600,000 (approximately HK$8,113,207.55), is less than HK             
    $10,000,000, the Sale and Purchase Agreement is only subject to the       
    reporting and announcement requirements set out in Chapter 14A of the     
    Listing Rules.  Relevant details will also be included in the next        
    published annual report and accounts of the Company in accordance with    
    Rule 14A.45 of the Listing Rules.                                         
                                                                              
    According to the Listing Rules, the Sale and Purchase Agreement also      
    constitutes a discloseable transaction for the Company which is           
    subject to the notification and publication requirements as set out in    
    Rules 14.34 to 14.39 of the Listing Rules. A circular containing,         
    among other things, details of the Sale and Purchase Agreement will be    
    despatched to the shareholders of the Company as soon as practicable.     
                                                                              
    SALE AND PURCHASE AGREEMENT                                               
                                                                              
    Date                                                                      
                                                                              
    12 May 2005                                                               
                                                                              
    Parties                                                                   
                                                                              
    (1) MCIL as the vendor; and                                               
                                                                              
    (2) the Company and Shuangliu as the purchasers                           
                                                                              
    Major terms of the Sale and Purchase Agreement                            
                                                                              
    Transaction between MCIL and the Company                                  
                                                                              
                                                                              
    Consideration: RMB5,733,334 (approximately HK$5,408,805.66), 50% of       
    which (amounting to RMB2,866,667) will be payable within 15 days from     
    the date of the Sale and Purchase Agreement and the remaining balance     
    of RMB2,866,667 will be payable within 15 days from the date the new      
    business licence reflecting the transaction is issued for Chengdu MCIL    
    by the relevant government authority.  All consideration will be          
    payable in cash from the Company's internal resources.                    
                                                                              
    Transaction between MCIL and Shuangliu                                    
                                                                              
                                                                              
    Consideration: RMB2,866,666 (approximately HK$2,704,401.89), 50% of       
    which (amounting to RMB1,433,333) will be payable within 15 days from     
    the date of the Sale and Purchase Agreement and the remaining balance