09:57     CASIL TELECOM<01185> - Announcement (3)                             

    Notwithstanding the above, the Directors consider that the Company        
    would benefit from the entering into the Joint Venture Contracts. The     
    Transactions will widen the business scope as the Joint Ventures will     
    bring the Group into a new arena. Further, the other Joint Venture        
    Parties are experienced in the industry of electricity supply. They       
    have established client base and are experienced in controlling the       
    costs of running electricity plants. The actual electricity price will    
    be determined by the relevant price authority in the PRC. The             
    Directors consider that the earning base of the Group could be widened    
    accordingly. They therefore determine to proceed with the                 
    Transactions. The establishment of the Joint Ventures will be subject     
    to the approval of the relevant PRC authorities and approvals by the      
    shareholders of all the Joint Venture Parties, including the Company.     
                                                                              
    CLARIFICATION OF THE DATE OF THE EXTRAORDINARY GENERAL MEETING            
                                                                              
    Reference is also made to the notice of extraordinary general meeting     
    of the Company ("EGM") setting out an ordinary resolution of approving    
    the Transactions, which has been published in newspapers on 19 May        
    2005. The Board has discovered that there are typographical errors        
    regarding the date of extraordinary general meeting. The Board wishes     
    to clarify that the EGM should be held on Monday, 6 June 2005 instead     
    of Friday, 3 June 2005. The Circular accompanying the notice of the       
    EGM with an accurate date of meeting has been sent to the shareholders    
    of the Company on 19 May 2005.                                            
                                                                              
            By Order of the Board                                             
            Cheng Chai Fu                                                     
            Secretary                                                         
                                                                              
    Hong Kong, 19 May 2005                                                    
                                                                              
    As at the date of this announcement, the Board comprises Mr. Rui          
    Xiaowu (Chairman), Mr. Wang Xiaodong (Vice-chairman and Managing          
    Director), Mr. Zhou Xiaoyun, Mr. Han Jiang, Mr. Guo Xiaopeng and Mr.      
    Xu Jian Hua as executive directors, Mr. Ma Yucheng as non-executive       
    director and Mr. Zhu Shixiong, Mr. Moh Kwen Yung, Mr. Yiu Ying Wai and    
    Mr. Wong Fai, Philip as independent non-executive directors.              
                                                                              
    * For identification purpose only