Hony Media Group — M&A Activity 2004

Dec 31, 2004

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CHINA STRATEGIC HOLDINGS LIMITED

(Incorporated in Hong Kong with limited liability)

(stock code: 235)

ANNOUNCEMENT

In accordance with Rule 3.7 of the Hong Kong Code on Takeovers and Mergers, the Company wishes to inform the public of the status of the Possible Acquisition.

Reference is made to the announcements issued by China Strategic Holdings Limited (the “ Company ”) dated 15 October 2004 and 15 November 2004 respectively and the joint announcement made by the Company and Wing On Travel (Holdings) Limited dated 30 November 2004 regarding, among others, the possible acquisition (the “ Possible Acquisition ”) by a third party of the interests of Hanny Holdings Limited (“ Hanny ”) and Paul Y. – ITC Construction Holdings Limited (“ Paul Y. – ITC ”) in the Company. Unless otherwise specified, terms used in this announcement shall have the same meaning as those defined in the announcement of the Company dated 15 October 2004.

The Company has been informed in writing by each of Hanny and Paul Y. – ITC on 30 December 2004 that it is still in discussion with the third party regarding the Possible Acquisition and that the discussion regarding the Possible Acquisition is not in an advanced stage, material terms of the Possible Acquisition have yet to be agreed and no timetable has been fixed for the Possible Acquisition. Therefore, both Hanny and Paul Y. – ITC do not consider that an offer for the shares of the Company is imminent.

As the Possible Acquisition may or may not take place, shareholders of the Company and public investors are advised to exercise caution when dealing in the shares of the Company. The directors of the Company will keep the market informed as and when they have been notified of the progress of the Possible Acquisition in compliance with the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the Hong Kong Code on Takeovers and Mergers.

By Order of the Board of China Strategic Holdings Limited Chan Yan Yan, Jenny Secretary

Hong Kong, 31 December 2004

The directors of the Company jointly and severally accept full responsibility for the accuracy of the information contained in this announcement and confirm, having made all reasonable inquiries, that to the best of their knowledge, opinions expressed in this announcement have been arrived at after due and careful consideration and there are no other facts not contained in this announcement, the omission of which would make any statement in this announcement misleading.

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Executive Directors:— Dr. Chan Kwok Keung, Charles Dr. Yap, Allan Ms. Chau Mei Wah, Rosanna Ms. Chan Ling, Eva Mr. Chan Kwok Hung (Alternate to Dr. Chan Kwok Keung, Charles) Mr. Lui Siu Tsuen, Richard (Alternate to Dr. Yap, Allan)

Independent Non-Executive Directors:— Mr. David Edwin Bussmann Ms. Fung Wan Yiu, Agnes Mr. Wong King Lam, Joseph

Please also refer to the published version of this announcement in The Standard.

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