Hony Media Group — M&A Activity 2004

Nov 16, 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.

Unless otherwise specified, terms used in this announcement shall have the same meaning as those defined in the announcement issued by the Company dated 15 October 2004 (the “ Announcement ”) in relation to Hanny Holdings Limited (“ Hanny ”) and Paul Y. — ITC Construction Holdings Limited (“ Paul Y. — ITC ”) having been approached by a third party for the possible acquisition by that party of interests in the shares of the Company (the “ Possible Acquisition ”).

The Company has been informed in writing by each of Hanny and Paul Y. — ITC on 15 November 2004 that it is still in discussion with the third party regarding the Possible Acquisition but there has been no significant progress since the release of the Announcement. Each of Hanny and Paul Y. — ITC has further confirmed in writing that as the discussion regarding the Possible Acquisition is still at a preliminary stage, no terms on the Possible Acquisition, in particular, the number of shares of the Company to be acquired and the price thereof, have been agreed and no timetable has been fixed for the Possible Acquisition. Therefore, both Hanny and Paul Y. — ITC are not aware 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 Jenny Chan Secretary

Hong Kong, 15 November 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 Mr. Li Wa Kin 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 China Daily.

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