Hony Media Group — Capital/Financing Update 2008

Feb 5, 2008

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 STRATEGIC HOLDINGS LIMITED (中策集團有限公司)

(incorporated in Hong Kong with limited liability)

(Stock Code: 235)

MONTHLY ANNOUNCEMENT ON CONVERSION OF CONVERTIBLE NOTES

This announcement is made pursuant to the paragraph of “Dilution Effect on Shareholders” in the Circular in relation to, among other things, placing of the Convertible Notes.

Reference is made to the circular of China Strategic Holdings Limited (the “Company”) dated 14 September 2007 (the “Circular”). Unless otherwise specified, terms used herein shall have the same meanings as those defined in the Circular.

This announcement is made pursuant to the paragraph of “Dilution Effect on Shareholders” in the Circular in relation to, among other things, placing of the Convertible Notes.

The Board would like to report that no conversion of the Convertible Notes was made by the holders of the Convertible Notes during the period from 1 January 2008 to 31 January 2008. Accordingly, the principal amount of the Convertible Notes outstanding as at 31 January 2008 was HK$1,320,000,000;

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The details regarding the total number of Shares issued pursuant to other transactions and the total issued share capital of the Company as at the commencement and the last day of January 2008 are set out below:

	Issued share	Number of
	capital	issued Shares
	(HK$)
As at 1 January 2008	52,879,754.30	528,797,543
Total number of new Shares issued pursuant to
the Second Share Placing	150,000,000.00	1,500,000,000
As at 31 January 2008	202,879,754.30	2,028,797,543
	By Order of the Board
	China Strategic Holdings Limited
	Chow Kam Wah
	Director

Hong Kong, 5 February 2008

As at the date of this announcement, the board of directors of the Company comprises Ms. Chiu Ching Ching, Mr. Wong Ah Chik, Mr. Kwok Ka Lap, Alva, Ms. Chan Ling, Eva, Mr. Lee Sun Man and Mr. Chow Kam Wah as executive directors, and Ms. Ma Yin Fan, Mr. Phillip Fei and Mr. Leung Hoi Ying as independent non-executive directors.

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