09:06     HC INTL<08292> - Announcement & Resumption of Trading (2)           

    of the Company and are subject to the approval of                         
    Independent Shareholders at the EGM. Mr. Guo, who                         
    holds approximately 13.75% of the Shares and his                          
    associates will abstain from voting on the resolution                     
    to approve the Proposed Restructuring Equity                              
    Transfers and any vote exercised by the Independent                       
    Shareholders at the EGM shall be taken by poll.                           
                                                                              
    Pursuant to the Sale and Purchase Agreement, the                          
    Proposed CMN Share Transfer constitutes a major                           
    disposal under Chapter 19 of the GEM Listing Rules                        
    and is subject to the approval of the Shareholders                        
    at the EGM. No Shareholder is required to abstain from                    
    voting in respect of the proposed resolution to                           
    approve the Proposed CMN Share Transfer at the EGM.                       
                                                                              
    A circular containing, among other things, details                        
    of the Proposed Disposal, a letter of advice from an                      
    independent financial adviser and a recommendation                        
    of the Independent Board Committee, together with a                       
    notice convening the EGM will be dispatched to the                        
    Shareholders in accordance with the requirements of                       
    the GEM Listing Rules.                                                    
                                                                              
    At the request of the Company, trading in the Shares                      
    was suspended with effect from 9:30 a.m. on 13 May                        
    2005 pending the release of this announcement. An                         
    application has been made by the Company to the Stock                     
    Exchange for the resumption of trading in the Shares                      
    with effect from 9:30 a.m. on 30 May 2005.                                
                                                                              
    Shareholders and potential investors should note that                     
    Closing, which is subject to approvals by the                             
    Shareholders at the EGM and other conditions, may or                      
    may not take place. Shareholders and potential                            
    investors are advised to exercise caution when                            
    dealing in the Shares.                                                    
                                                                              
    By order of the Board                                                     
    HC International, Inc.                                                    
    Guo Fansheng                                                              
    Chief Executive Officer and Executive Director                            
                                                                              
    Beijing, the PRC, 27 May 2005                                             
                                                                              
    As at the date hereof, the Board comprises:                               
                                                                              
    Mr. Guo Fansheng (Executive Director and Chief                            
    Executive Officer)                                                        
    Ms. Wu Ying (Executive Director)                                          
    Ms. Lai Sau Kam, Connie (Executive Director)                              
    Mr. Hugo Shong (Non-executive Director)                                   
    Mr. Yang Fei (Non-executive Director)                                     
    Mr. Zhang Ye (Independent non-executive Director)                         
    Mr. Xiang Bing (Independent non-executive Director)                       
    Mr. Guo Wei (Independent non-executive Director)                          
                                                                              
    This announcement, for which the Directors                                
    collectively and individually accept full                                 
    responsibility, includes particulars given in                             
    compliance with the GEM Listing Rules for the purpose                     
    of giving information with regard to the Company. The                     
    Directors having made all reasonable enquiries,                           
    confirm that, to the best of their knowledge and                          
    belief: (1) the information contained in this                             
    announcement is accurate and complete in all material                     
    respects and not misleading; (2) there are no other                       
    matters the omission of which would make any statement                    
    in this announcement misleading; and (3) all opinions                     
    expressed in this announcement