09:17     CHINAINFO<08206> - Announcement & Resumption of Trading (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.                                                     
                                                                              
    CHINAINFO HOLDINGS LIMITED                                                
    (Incorporated in the Cayman Islands with limited                          
    liability)                                                                
    (Stock Code: 8206)                                                        
                                                                              
    SUPPLEMENTAL MEMORANDUMS OF UNDERSTANDING                                 
    AND ESCROW LETTER IN RESPECT OF ACQUISITION OF 51%                        
    OF THE SHAREHOLDING INTEREST IN A PC GAMES COMPANY                        
    AND RESUMPTION OF TRADING                                                 
                                                                              
    This announcement is made by the Company pursuant to                      
    Rule 17.10 of the Listing Rules.                                          
                                                                              
    Reference is made to the announcement of the Company                      
    dated 26 April 2005.                                                      
                                                                              
    The Purchaser and the Vendor entered into the                             
    Supplemental MOUs on 19 May 2005 and 24 May 2005                          
    respectively, effectively amending the MOU in the                         
    following manner:                                                         
                                                                              
    (i)     that an amount in the sum of HK$10 million shall                  
    be payable by the Purchaser to a firm of PRC lawyers                      
    upon the signing of the MOU as earnest money for the                      
    Acquisition; and                                                          
                                                                              
    (ii)    in the event that the Sale and Purchase                           
    Agreement is not entered into on or before 31 August                      
    2005 or that the Purchaser does not wish to proceed                       
    with the Acquisition, the Purchaser shall have the                        
    right to instruct the immediate return of the Earnest                     
    Money.                                                                    
                                                                              
    The Purchaser, the Vendor and a firm of PRC lawyers                       
    had further signed the Escrow Letter on 24 May 2005                       
    setting out the escrow arrangements regarding the                         
    payment, holding and release of the Earnest Money.                        
    In particular, the Earnest Money had been paid into                       
    the PRC lawyers' account on escrow pending the                            
    instructions of the Purchaser as to its release. In                       
    the event no instructions as to its release have been                     
    given by the Purchaser on or before 31 August 2005,                       
    the Earnest Money is to be returned to the Purchaser.                     
    The Company will comply with the Listing Rules,                           
    including the making of an appropriate announcement,                      
    in the event the Earnest Money is released to the                         
    Vendor.                                                                   
                                                                              
    Reference is also made to the announcements of the                        
    Company dated 11 May 2005 and 23 May 2005 in respect                      
    of the CB Placing, the placing of existing Shares and                     
    the Subscription. The Group now intends to use part                       
    of the proceeds of the CB Placing and the Subscription                    
    to fund the payment of the Earnest Money. The balance                     
    of the net proceeds of the CB Placing and the                             
    Subscription will remain as general working capital                       
    of the Group as originally announced.                                     
                                                                              
    The Directors wish to reiterate that the Acquisition                      
    may or may not proceed as there is no binding                             
    obligation on the Vendor and Purchaser to enter into                      
    the Sale & Purchase Agreement. Shareholders and the                       
    investing public should exercise caution when dealing                     
    in the Shares.                                                            
                                                                              
    The entering into of the Sale and Purchase Agreement