09:44 CHINA SPECIAL STEEL HOLDINGS CO. LIMITED<02889> - Ann. (2) . The expected commencement date of dealings in the Shares on the main board of the Stock Exchange will be at 9:30 a.m. on Thursday, 19 May 2005. OFFER PRICE The Offer Price has been fixed by agreement between the Global Coordinator, on behalf of the Public Offer Underwriters, and the Company at HK$1.48 per Offer Share (excluding brokerage of 1 per cent., SFC transaction levy of 0.005 per cent., investor compensation levy of 0.002 per cent. and Stock Exchange trading fee of 0.005 per cent.). The net proceeds of the International Offering accruing to the Company (after deducting the relevant expenses and based on the final Offer Price of HK$1.48 per Offer Share) amount to approximately HK$239 million, of which approximately HK$94 million for refinement of production process to attain optimum production capacity, approximately HK$19 million for developing and producing pearlite, approximately HK$90 million for repaying bank loans, approximately HK$28 million for purchasing raw materials and the balance of approximately HK$8 million for general working capital purposes. The Company confirms that the net proceeds raised from the listing are sufficient to implement the business plans as disclosed in the Prospectus. APPLICATIONS RECEIVED AND ALLOCATION OF PUBLIC OFFER SHARES The Directors announce that at the close of the application lists at 12:00 noon on Thursday, 12 May 2005, a total of 1,366 valid applications have been received pursuant to the Public Offer for a total of 177,128,000 Offer Shares, equivalent to approximately 9.84 times of the total number of 18,000,000 Offer Shares initially available for subscription under the Public Offer. The Global Coordinator has exercised its rights under the Public Offer Underwriting Agreement and the Placing Underwriting Agreement (and as disclosed in the paragraphs headed ``Offer Mechanism --- Basis of Allocation of the Offer Shares'' in the Prospectus) to reallocate 18,000,000 Offer Shares initially to be offered under the Placing to satisfy excess demand under the Public Offer. As a result of such reallocation to satisfy public demand, 36,000,000 Offer Shares are made available for the Public Offer and 144,000,000 Offer Shares are made available for the Placing and the Placing was fully subscribed. A total of 1,356 valid applications in respect of a total of 126,128,000 Offer Shares were received for Public Offer Shares with an aggregate subscription amount based on the maximum offer price of HK$1.85 per Offer Share (excluding brokerage of 1 per cent., the Stock Exchange trading fee of 0.005 per cent., the SFC transaction levy of 0.005 per cent. and SFC investor compensation levy of 0.002 per cent. payable) of HK$5 million or less (equivalent to approximately 14.01 times of the 9,000,000 Offer Shares initially available for allocation in Pool A), and a total of 10 valid applications in respect of a total of 51,000,000 Offer Shares were received for Public Offer Shares with an aggregate subscription amount based on the maximum offer price of HK$1.85 per Offer Share (excluding brokerage of 1 per cent., the Stock Exchange trading fee of 0.005 per cent., the SFC transaction levy of 0.005 per cent. and SFC investor compensation levy of 0.002 per cent. payable) of more than HK$5 million (equivalent to approximately 5.67 times of the 9,000,000 Offer Shares initially available for allocation in Pool B). The Offer Shares offered under the Public Offer were conditionally allotted to all applicants, the particulars of which are set out in the paragraph headed ``Allotment of Public Offer Shares'' below. No Offer Shares have been allocated to applicants who are connected persons of the Company, its directors, promoters, substantial shareholders, chief executive or any of their respective associates (as defined in the Listing Rules). None of Cazenove, the Underwriters and their respective associates (as defined in the Listing Rules) has taken up any Offer Shares for its own benefit in the International Offering. No application on a WHITE or YELLOW Application Form (whether individually or jointly) for more than 100 per cent. of the Offer Shares initially being offered to the public for subscription under either pool A or pool B in the Public Offer has been identified. Applications not based on the denominations set out in the Application Forms or otherwise not in accordance with the instructions set out therein are rejected. No multiple application has been received.