Central Development Holdings Limited — Capital/Financing Update 2003

Mar 5, 2003

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.

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SEAPOWER RESOURCES INTERNATIONAL LIMITED 海暉國際實業有限公司

(Provisional Liquidators Appointed)

(Incorporated in the Cayman Islands with limited liability)

TERMINATION OF THE RESTRUCTURING OF

SEAPOWER RESOURCES INTERNATIONAL LIMITED (PROVISIONAL LIQUIDATORS APPOINTED) INVOLVING, INTER ALIA, CAPITAL REORGANISATION, DEBT RESTRUCTURING INVOLVING CREDITORS’ SCHEMES OF ARRANGEMENT IN ACCORDANCE WITH SECTION 86 OF THE CAYMAN COMPANIES LAW AND SECTION 166 OF THE COMPANIES ORDINANCE, SUBSCRIPTION OF NEW SHARES AND WARRANTS, WHITEWASH WAIVER, OTHER PROPOSALS REGARDING ADOPTION OF NEW SHARE OPTION SCHEME AND GENERAL MANDATE TO ISSUE NEW SHARES

ANNOUNCEMENT

In view of the Investors’ on-going defaults in relation to the Subscription proceeds and the post closing working capital, the Provisional Liquidators, with the agreement of the committee of creditors, have terminated the Restructuring Agreement with effect from 12:30pm on 5 March 2003.

The Provisional Liquidators are currently searching for and negotiating with alternative investors with a view to entering into a formal restructuring agreement as soon as possible. In addition, the Provisional Liquidators are reviewing their rights under the Restructuring Agreement in respect of the Investors’ on-going defaults. Further announcements including, but not limited to the restructuring of the Company and the progress on the winding up petition will be issued as and when appropriate.

Trading in the Shares of the Company has been suspended since 2:30 p.m. on 28 December 2001 and will remain suspended until further notice.

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Reference is made to the circular issued by the Company and the Investors dated 14 November 2002 (the “Circular”) and the announcement made by the Company dated 21 February 2003. Terms used in this announcement shall have the same meaning as those defined in the Circular.

The Provisional Liquidators announce that the Investors continue to be in default in relation to the Subscription proceeds of HK$69,000,000 and an amount equal to a post-closing working capital amount of approximately HK$6,200,000 under the Restructuring Agreement. The Provisional Liquidators, with the agreement of the committee of creditors, have terminated the Restructuring Agreement with effect from 12:30pm on 5 March 2003 and the deposit of HK$2,000,000 paid by the Investors has been forfeited pursuant to the Restructuring Agreement.

The Provisional Liquidators are currently searching for and negotiating with alternative investors with a view to entering into a formal restructuring agreement as soon as possible.

In addition, the Provisional Liquidators are reviewing their rights under the Restructuring Agreement in respect of the Investors’ on-going defaults. Further announcements including, but not limited to the restructuring of the Company and the progress on the winding up petition will be issued as and when appropriate.

Trading in the Shares of the Company has been suspended since 2:30 p.m. on 28 December 2001 and will remain suspended until further notice.

For and on behalf of SEAPOWER RESOURCES INTERNATIONAL LIMITED

(Provisional Liquidators Appointed) Cosimo Borrelli Fan Wai Kuen

Joint and Several Provisional Liquidators

Hong Kong, 5 March 2003

The Provisional Liquidators jointly and severally accept full responsibility for the accuracy of the information contained in this announcement and confirm, having made all reasonable inquiries, that to the best of their knowledge, the opinions expressed in this announcement have been arrived at after due and careful consideration and there are no other facts not contained in this announcement, the omission of which would make any statement in this announcement misleading.

Please also refer to the published version of this announcement in The Standard.

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