Computer And Technologies Holdings Limited — M&A Activity 2000

Nov 20, 2000

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 AEROSPACE INTERNATIONAL HOLDINGS LIMITED

（Incorporated in Hong Kong with limited liability）

(the “Company”)

Announcement

The Board would like to clarify press articles on a possible acquisition of satellite application businesses from its holding company.

This statement is made at the request of The Stock Exchange of Hong Kong Limited.

The board of directors of the Company has noted the recent press articles referring to a possible acquisition of satellite application businesses from China Aerospace Science & Technology Corporation (“CASC”), the major shareholder of the Company, by the Company（“Acquisition”）. The Company confirms that it is now discussing several proposals of acquiring satellite application businesses with CASC. Meanwhile, the introduction of independent strategic partners with hi-tech background is also in consideration. This is in line with its stated objectives as set out in the Company’s 1999 annual report that it will focus on developing hi-tech industry, information technology and satellite application businesses so as to enhance its market competitiveness. The formal terms and schedules of Acquisition and the strategic partnership will be disclosed when the proposals are concluded and the approvals are obtained from the relevant Chinese authorities. However, the Board would ensure that proper disclosures will be made in accordance with Paragraphs 2 and 3 of the Listing Agreement and Chapter 14 of the Listing Rules respectively.

Investors are advised that they should exercise caution in dealings of the Company’s securities.

The Directors of the Company (save for Mr. Shen Dabin, the non-executive directors, and Mr. Lee Hung Sang, the independent directors, are not in Hong Kong and not contactable prior to the issue of this announcement) individually and jointly accept responsibility for the accuracy of this statement.

	By order of the Board Ken Chan Company Secretary November 17, 2000