China Information Technology Development Limited — Capital/Financing Update 2002

Nov 15, 2002

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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Xteam Software International Limited

(Incorporated in the Cayman Islands with limited liability)

COMPLETION OF A DISCLOSABLE TRANSACTION IN RELATION TO THE ACQUISITION OF SHARES IN SNOW FAIR CO., LTD. AND LAPSE OF PUT OPTION

Reference is made to the announcement and circular of the Company dated 7th October, 2002 and 28th October, 2002 respectively in relation to the acquisition of shares and granting of option in respect of the shares in Snow Fair Co., Ltd. The Board is pleased to announce that completion of the Acquisition took place on 15th November, 2002.

The fair value of the Consideration is HK$11,232,450 comprising (i) an amount equivalent to HK$9,391,000 in cash; and (ii) the fair value of the Consideration Shares of HK$1,841,450.

Up to the expiry of the Option Period (being 31st October, 2002), the Vendor has not exercised the Put Option pursuant to the Option Deed to require the Company to acquire 9% of the issued share capital of Snow Fair Co., Ltd. Therefore, the Put Option has lapsed and Option Completion will not take place.

As a result, the Company has successfully acquired 51% of the issued share capital of Snow Fair Co., Ltd.

Reference is made to the announcement of the Company dated 7th October, 2002 (the “Announcement”) and the circular of the Company dated 28th October, 2002 (the “Circular”) in relation to the acquisition of shares and granting of option in respect of the shares in Snow Fair Co., Ltd. Unless otherwise stated, terms used herein shall have same meanings as defined in the Announcement and the Circular.

Completion of the Acquisition

The Board is pleased to announce that completion of the Acquisition took place on 15th November, 2002.

At Completion, the Consideration of HK$12,224,000 was satisfied by the Company by way of (i) payment of an amount equivalent to HK$9,391,000 in cash; and (ii) issue and allotment of 5,666,000 new Shares, credited as fully paid, at HK$0.50 per Share to the

Vendor. The fair value of the Consideration Shares (as booked in the accounts of the Company) is HK$1,841,450 (being HK$0.325 per Share) which is calculated based on the market price of the Shares quoted on the Stock Exchange on the date of completion of the Acquisition, being 15th November, 2002. Therefore, the fair value of the Consideration is HK$11,232,450 comprising (i) an amount equivalent to HK$9,391,000 in cash; and (ii) the fair value of the Consideration Shares of HK$1,841,450.

Lapse of Put Option

Up to the expiry of the Option Period (being 31st October, 2002), the Vendor has not exercised the Put Option pursuant to the Option Deed to require the Company to acquire 9% of the issued share capital of Snow Fair Co., Ltd. Therefore, the Put Option has lapsed and Option Completion will not take place.

As a result, the Company has successfully acquired 51% of the issued share capital of Snow Fair Co., Ltd.

By order of the board of Xteam Software International Limited Mak To Wai Company Secretary

Hong Kong, 15th November, 2002

This announcement, for which the directors of Xteam Software International Limited collectively and individually accept full responsibility, includes particulars given in compliance with the Rules Governing the Listing of Securities on the GEM of the Stock Exchange 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 believes: (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 have been arrived at after due and careful consideration and are founded on bases and assumptions that are fair and reasonable.

This announcement will remain on the GEM website at www.hkgem.com on the “Latest Company Announcement” page for seven days from the date of its posting.