Hony Media Group — M&A Activity 2004

Oct 18, 2004

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CHINA STRATEGIC HOLDINGS LIMITED

(Incorporated in Hong Kong with limited liability)

(stock code: 235)

ANNOUNCEMENT

This announcement is made pursuant to rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

The Company has been notified today that Hanny and Paul Y. – ITC have been approached last night by a third party in connection with the possible acquisition by that person of interests in the shares of the Company from Hanny and/or Paul Y. – ITC, which may or may not result in a general offer for all the shares of the Company (other than those already owned or purchased by the third party). As this transaction may or may not proceed, investors should exercise caution when dealing in the shares of the Company.

This announcement is made pursuant to rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

China Strategic Holdings Limited (the “Company”) has been notified today that Hanny Holdings Limited (“Hanny”) and Paul Y. – ITC Construction Holdings Limited (“Paul Y. – ITC”) have been approached last night by a third party (the “Third Party”) in connection with the possible acquisition by the Third Party of interests in the shares of Company from Hanny and/or Paul Y. – ITC, which may or may not result in a general offer for all the shares of the Company (other than those already owned or purchased). To the best of the knowledge, information and belief of the directors of the Company, having made all reasonable enquiry, the Third Party and its ultimate beneficial owner are independent of the Company and are not connected persons of the Company. As at the date of this announcement (based on the records of the Company) Hanny and Paul Y. – ITC are each interested in approximately 29.36% of the issued share capital of the Company. The Company understands from Hanny and Paul Y. – ITC that their discussions in respect of this possible transaction are at a very preliminary stage. The Company has not, and understands that no agreement or contract has been entered into between by either Hanny or Paul Y. – ITC with such Third Party in connection with such transaction. As this transaction may or may not proceed, investors should exercise caution when dealing in the shares of the Company.

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

By order of the Board Dr. Chan Kwok Keung, Charles Chairman

Hong Kong, 15th October, 2004

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

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