10:26     INTERCHINA HOLD<00202> - 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.                                                             
                                                                              
    INTERCHINA HOLDINGS COMPANY LIMITED                                       
    (Incorporated in Hong Kong with limited liability)                        
    (Stock Code: 202)                                                         
                                                                              
    ANNOUNCEMENT                                                              
                                                                              
    The Directors have noted the recent increase in the trading               
    volume of the shares of the Company and wish to state that save           
    for negotiations regarding (i) the possible acquisition as set            
    out in the announcements of the Company dated 13 April 2005 and           
    14 April 2005 and the possible variation to the terms of the              
    memorandum of understanding as set out in the announcement of             
    the Company dated 13 April 2005; (ii) the co-operation involving          
    construction of a sewage treatment plant in Hebei, the PRC, as            
    set out in the announcement of the Company dated 11 May 2005;             
    (iii) possible investment by a strategic investor in the water            
    treatment operations of the Group; (iv) negotiations with                 
    Xianyang Government regarding the future operations of the water          
    treatment plant project in Xianyang City, Shaanxi Province, the           
    PRC (details of which were disclosed in the announcement of the           
    Company dated 29 October 2003); and (v) negotiations regarding            
    future financing which might involve an element of convertible            
    securities, they are not aware of any reason for such increase.           
                                                                              
    The Directors confirm that save as disclosed above, there are             
    no negotiations or agreements relating to intended acquisitions           
    or realisations which are discloseable under Rule 13.23, neither          
    is the board aware of any matter discloseable under the general           
    obligation imposed by Rule 13.09, which is or may be of a                 
    price-sensitive nature.                                                   
                                                                              
    This announcement is made by the order of the board of the Company,       
    the Directors of which individually and jointly accept                    
    responsibility for the accuracy of this statement.                        
                                                                              
    Shareholders and potential investors are advised to exercise              
    caution when dealing in shares of the Company.                            
                                                                              
    The directors (the "Directors") of Interchina Holdings Company            
    Limited (the "Company", which together with its subsidiaries,             
    the "Group") have noted the recent increase in the trading volume         
    of the shares of the Company and wish to state that save for              
    negotiations regarding (i) the possible acquisition as set out            
    in the announcements of the Company dated 13 April 2005 and 14            
    April 2005 and the possible variation to the terms of the                 
    memorandum of understanding as set out in the announcement of             
    the Company dated 13 April 2005; (ii) the co-operation involving          
    construction of a sewage treatment plant in Hebei, the People's           
    Republic of China (the "PRC"), as set out in the announcement             
    of the Company dated 11 May 2005; (iii) possible investment by            
    a strategic investor in the water treatment operations of the             
    Group; (iv) negotiations with Xianyang Government regarding the           
    future operations of the water treatment plant project in                 
    Xianyang City, Shaanxi Province, the PRC (details of which were           
    disclosed in the announcement of the Company dated 29 October             
    2003); and (v) negotiations regarding future financing which              
    might involve an element of convertible securities (items (iii),          
    (iv) and (v) above have already been disclosed in the                     
    announcement of the Company dated 14 April 2005), they are not            
    aware of any