09:49     CHINA INSURANCE<00966> - Announcement                               

    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.                   
                                                                              
    CHINA INSURANCE INTERNATIONAL HOLDINGS COMPANY LIMITED                    
    (Incorporated in Hong Kong with limited liability)                        
    (Stock Code: 966)                                                         
                                                                              
    EXPIRY AND NON-EXERCISE OF OPTIONS TO ACQUIRE EQUITY                      
    INTEREST IN THE TAI PING INSURANCE COMPANY, LIMITED*                      
                                                                              
    Reference is made to the Circular in relation to, amongst other           
    things, the conditional Option Deed dated 26 November 2004 entered        
    into between CIHC, the Company and ICBC (Asia). The Options under the     
    Option Deed expired on 25 May 2005 and the Company was informed by        
    ICBC (Asia) that the board of directors of ICBC (Asia) had resolved       
    not to exercise the Options.                                              
                                                                              
    Reference is made to the announcement of China Insurance International    
    Holdings Company Limited (the "Company") dated 26 November 2004 and       
    the circular of the Company dated 13 December 2004 (the "Circular") in    
    relation to, amongst other things, the conditional Option Deed dated      
    26 November 2004 entered into between the CIHC, the Company and ICBC      
    (Asia). Unless otherwise defined, capitalised terms used in this          
    announcement shall have the same meanings as defined in the Circular.     
                                                                              
    Pursuant to the Option Deed, each of CIHC and the Company has agreed      
    to grant to ICBC (Asia) at nil consideration the CIHC Option and the      
    CIIH Option respectively in respect of the right to ICBC (Asia) to,       
    conditional upon the Completion of the Capital Injection, acquire from    
    CIHC and the Company 2.475% and 9.975% respectively of the equity         
    interest in TPI at an aggregate consideration of RMB124,500,000           
    (approximately HK$117 million) within six months from the date of the     
    Option Deed, or such later date as the parties may extend pursuant to     
    the terms of the Option Deed. Completion of the Capital Injection took    
    place on 17 March 2005.                                                   
                                                                              
    The Options under the Option Deed expired on 25 May 2005, and the         
    Company was informed by ICBC (Asia) that the board of directors of        
    ICBC (Asia) had resolved not to exercise the Options. Reference is        
    also made to the announcement of ICBC (Asia) dated 25 May 2005.           
                                                                              
            By Order of the Board                                             
            TAM Chiu Tai Richard                                              
            Company Secretary                                                 
                                                                              
    Hong Kong, 25 May 2005                                                    
                                                                              
    As at the date of this announcement, the Board comprises 13 Directors,    
    of which Mr. YANG Chao, Mr. LIN Fan, Mr. MIAO Jianmin, Mr. SONG           
    Shuguang, Mr. XIE Yiqun, Mr. NG Yu Lam Kenneth, Dr. DONG Ming, Mr.        
    SHEN Koping Michael and Mr. LAU Siu Mun Sammy, are executive              
    Directors, Mr. ZHENG Changyong is the non-executive Director and Dr.      
    WU Jiesi, Mr. CHE Shujian and Mr. LAU Wai Kit are independent non-        
    executive Directors.                                                      
                                                                              
    This announcement is posted on the website of the main board of The       
    Stock Exchange of Hong Kong Limited at www.hkex.com.hk on the "Listed     
    Companies Information" page and on the website of the Company at          
    www.ciih.com.