09:46     CITIC 21CN<00241> - 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.                                                     
                                                                              
    CITIC 21CN COMPANY LIMITED                                                
    *                                                                         
    (incorporated in Bermuda with limited liability)                          
    (Stock code: 241)                                                         
                                                                              
    ANNOUNCEMENT                                                              
                                                                              
    The Board is pleased to announce that on 23 May 2005,                     
    CITIC 21CN TELECOM, a wholly owned subsidiary of the                      
    Company, entered into a memorandum of understanding                       
    with * (Hebei Board of Radio and                                          
    Television) in the PRC regarding the formation of a                       
    joint venture to be engaged in (i) the development                        
    of digital television and multi services technology                       
    platform, (ii) visual, audio and data transmission                        
    business for the PRC government, (iii) sales and                          
    leasing of set-top boxes and (iv) set up of program                       
    content library for digital television network in                         
    Hebei Province, the PRC.                                                  
                                                                              
    This announcement is made pursuant to Rule 13.09(1)                       
    of the Rules Governing the Listing of Securities                          
    ("Listing Rules") on The Stock Exchange of Hong Kong                      
    Limited ("Stock Exchange").                                               
                                                                              
    The board of directors ("Board") of CITIC 21CN COMPANY                    
    LIMITED ("Company") is pleased to announce that on                        
    23 May 2005, CITIC 21CN TELECOM COMPANY LIMITED                           
    ("CITIC 21CN TELECOM"), a wholly owned subsidiary of                      
    the Company, entered into a Memorandum of                                 
    Understanding ("MOU") with * (Hebei                                       
    Board of Radio and Television), a third party                             
    independent of the Company and its subsidiaries (the                      
    "Group") and not a connected person (within the                           
    meaning under the Listing Rules) of the Group in the                      
    PRC regarding the proposed formation of a joint                           
    venture ("Joint Venture") with registered capital of                      
    RMB100,000,000 (equivalent to approximately                               
    HK$94,340,000).                                                           
                                                                              
    Under the MOU, the Joint Venture will be engaged in                       
    (i) the construction of, and provision of services                        
    to, the digital television and multi services                             
    technology platform, (ii) visual, audio and data                          
    transmission business for the PRC government, (iii)                       
    sales and leasing of set-top boxes and (iv) the set                       
    up of program content library for digital television                      
    network in the Hebei Province, the PRC. The Joint                         
    Venture will be owned as to 49% by CITIC 21CN TELECOM                     
    and 51% by Hebei Board of Radio and Television or its                     
    associates. CITIC 21CN TELECOM and Hebei Board of                         
    Radio and Television will appoint three and four                          
    members to the board of directors of the Joint Venture                    
    respectively. It is also agreed that the Joint Venture                    
    will be the only system builder and service provider                      
    for digital television and multi services technology                      
    platform in Hebei Province, the PRC.                                      
                                                                              
    The terms of the MOU are subject to the entering into                     
    of a legally binding joint venture agreement. Further                     
    announcement will be made in relation to such legally                     
    binding agreement as and when appropriate or if the                       
    transaction does not proceed.                                             
                                                                              
    As at the date of this announcement, the Board of