09:36     CHINA CREDIT<00185> - Announcement (3)                              

    Information on OCCL                                                       
    OCCL, a company incorporated in Hong Kong, is licensed                    
    to operate the credit card business of MasterCard                         
    International Incorporated in Hong Kong. Presently,                       
    OCCL is a 72% indirectly owned subsidiary of CXP. Upon                    
    completion of the Transaction, OCCL will become a                         
    61.5% indirect owned subsidiary of CXP and remain as                      
    a subsidiary of the Company. As at March 31, 2003 and                     
    March 31, 2004, the audited net asset value of OCCL                       
    were approximately HK$48.6 million and HK$42.1                            
    million, respectively. The audited profit before and                      
    after tax for the year ended March 31, 2003 was                           
    approximately HK$9.9 million and HK$9.9 million,                          
    respectively, and the audited loss before and after                       
    tax for the year ended March 31, 2004 was                                 
    approximately HK$6.4 million and HK$6.4 million,                          
    respectively. Based on the Group's proportional                           
    interest of the net asset value of OCCL as at March                       
    31, 2004, the Group expects to record a profit of                         
    approximately HK$27 million from the Transaction. The                     
    Directors consider the terms of the New Heads of                          
    Agreement, which were arrived at after arm's length                       
    negotiations, to be fair and reasonable and in the                        
    interest of Company and the shareholders of the                           
    Company as a whole.                                                       
                                                                              
    Information on Startech                                                   
    The principal activities of Startech are marketing                        
    and trading in electronic component. Startech                             
    (through its proposed various other acquisitions) is                      
    building its transaction relationship management for                      
    merchant services by consolidating relevant                               
    technologies such as loyalty program management                           
    platforms, point-of-sales payment infrastructure,                         
    business intelligence and electronic card                                 
    manufacturing capabilities. As at December 31, 2003                       
    and December 31, 2004, the audited net deficit of                         
    Startech were approximately S$12.2 million (HK$54.9                       
    million) and S$6.8 million (HK$30.6 million),                             
    respectively. The audited loss before and after tax                       
    for the year ended December 31, 2003 was approximately                    
    S$1.7 million (HK$7.6 million) and S$1.7 million                          
    (HK$7.6 million), respectively, and the audited loss                      
    before and after tax for the year ended December 31,                      
    2004 was approximately S$1.1 million (HK$4.9 million)                     
    and S$1.0 million (HK$4.5 million), respectively.                         
                                                                              
    Reasons for the Transaction                                               
    The Group is engaged in financial services and                            
    securities investments, including corporate finance,                      
    consumer finance, the credit card business and travel                     
    related business. The directors of the Company                            
    believe that the proposed Transaction, if implemented,                    
    will introduce an institutional strategic                                 
    shareholder for OCCL and provide synergies in areas                       
    of transaction relationship management for CXP to                         
    build its "China Xpress" card business.                                   
                                                                              
    General                                                                   
    The Transaction constitutes a discloseable                                
    transaction for the Company under Chapter 14 of the                       
    Listing Rules. A circular containing information on                       
    the Transaction will be despatched to the                                 
    shareholders of the Company as soon as possible.                          
                                                                              
    Shareholders and investors are reminded to exercise                       
    caution when dealing in the securities of the Company.                    
                                                                              
    By Order of the Board                                                     
    Chan Tong Wan                                                             
    Managing Director                                                         
                                                                              
    Hong Kong, May 19, 2005                                                   
                                                                              
    As at the date of this announcement, the Board                            
    comprises of the executive directors Mr. Chan Heng                        
    Fai, Mr. Chan Tong Wan, Ms. Chan Yoke Keow, Ms. Chan                      
    Sook Jin, Mary-ann and non-executive director Mr.                         
    Fong Kwok Jen as well as independent non-executive                        
    directors Mr. Lee Ka Leung, Daniel, Mr. Wong Dor Luk,                     
    Peter and Mr. Joao Paulo Da Roza.