Hony Media Group — Capital/Financing Update 2004

Jan 9, 2004

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.

==> picture [59 x 57] intentionally omitted <==

CHINA STRATEGIC HOLDINGS LIMITED

(Incorporated in Hong Kong with limited liability)

ANNOUNCEMENT

The directors wish to announce that the wholly owned subsidiaries of the Company which are interested in the Rosedale Shares and the Apex Shares had not tendered acceptance under the Rosedale offer or the Apex offer, both of which closed on 9th January, 2004.

Reference is made to the announcement dated 8th August, 2003 issued by the Company (the “Announcement”) in relation to the Rosedale group reorganization, the Apex offer and the Rosedale offer. Terms defined in the Announcement shall have the same meanings when used in this announcement, unless the context requires otherwise.

The directors of the Company wish to announce that the wholly owned subsidiaries of the Company which are interested in the Rosedale Shares and the Apex Shares had not tendered acceptance under the Rosedale offer or the Apex offer, both of which closed at 4:00 p.m. on 9th January, 2004. As at the date of this announcement, the Group still holds approximately 22.6% and 22.6% of the issued share capital of Rosedale and Apex respectively.

By order of the Board China Strategic Holdings Limited Chan Ling, Eva Executive Director

Hong Kong, 9th January, 2004

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

1

CHINA STRATEGIC HOLDINGS LIMITED – Announcement

9th January, 2004