Computer And Technologies Holdings Limited — Capital/Financing Update 2005

Nov 2, 2005

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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CHINA AEROSPACE INTERNATIONAL HOLDINGS LIMITED

(Incorporated in Hong Kong with limited liability)

(Stock Code: 31)

Court Sanction of the Proposed Reduction of Capital and Cancellation of Share Premium Free Exchange of Share Certificate

The Board announces that the High Court of Hong Kong sanctioned the Reduction of Capital and the Cancellation of Share Premium on 1 November 2005.

Upon registration of the court order and minutes with Companies Registry (which is expected to be at or after 4:00 p.m. on 4 November 2005), the Reduction of Capital, Cancellation of Share Premium and Increase in Authorised Capital will become effective.

Further to the announcements dated 13 July 2005 and 25 August 2005 and the circular dated 28 July 2005, the Board announces that at the court hearing held on 1 November 2005, the High Court of Hong Kong sanctioned the Reduction of Capital and the Cancellation of Share Premium. Unless otherwise defined in this announcement, terms used in this announcement shall have the same meanings as those set out in the announcement of 13 July 2005.

Application has been made to the Listing Committee of the Stock Exchange for the granting of the listing of, and permission to deal in, the new shares of nominal value of HK$0.10 each in the issued share capital of the Company upon the Reduction of Capital and Cancellation of Share Premium becoming effective (the “New Shares”).

Subject to the granting of the listing of, and permission to deal in, the New Shares on the Stock Exchange, the New Shares will be accepted as eligible securities by Hong Kong Securities Clearing Company Limited (“HKSCC”) for deposit, clearance and settlement in the Central Clearing and Settlement System established and operated by HKSCC (“CCASS”) with effect from the effective date of the proposed reduction of capital and cancellation of share premium or such other date as determined by HKSCC. Settlement of transactions between participants of the Stock Exchange on any trading day is required to take place on the second trading day thereafter. All activities under CCASS are subject to the General Rules of CCASS and CCASS Operational Procedures in effect from time to time. Dealings in the New Shares may be settled through CCASS.

Subject to the Capital Reorganisation becoming effective at or after 4:00 p.m. on 4 November 2005, Shareholders may, during 7 November 2005 to 19 December 2005 (both dates inclusive), submit certificates for the shares of nominal value of HK$1.00 each (light blue in colour) to the Registrar of the Company, Standard Registrars Limited at Ground Floor, Bank of East Asia Harbour View Centre, 56

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Gloucester Road, Wanchai, Hong Kong for exchange, at the expenses of the Company, of certificates for the New Shares (skyblue in colour with “China Aerospace” printed watermarks). Thereafter, certificates for the existing Shares will be accepted for exchange only on payment of a fee. Nevertheless, certificates for the Shares will continue to be good evidence of legal title for trading and settlement and may be exchanged for certificates for the New Shares at any time.

By order of the Board Rui Xiaowu Chairman

Hong Kong, 2 November 2005

As of the date of this announcement, the Board of Directors of the Company comprises:

Executive Directors Non-Executive Directors Independent Non-Executive Directors Mr Zhao Liqiang Mr Rui Xiaowu (Chairman) Mr Lee Hung Sang Mr Zhou Qingquan Mr Gong Bo Mr Chow Chan Lum, Charles Mr Zhao Yuanchang Mr Chen Dingyi Mr Luo Zhenbang Mr Wu Hongju Ms Chan Ching Har, Eliza Mr Guo Xianpeng Mr Wang Yujun

“Please also refer to the published version of this announcement in China Daily”

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