Rego Interactive Co., Ltd — Capital/Financing Update 2005

Jul 21, 2005

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(a joint stock limited company incorporated in the People’s Republic of China with limited liability)

(Stock code: 1065)

Announcement relating to the adjustment on the Conversion Price of A Share Convertible Bonds

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.

Tianjin Capital Environmental Protection Company Limited (the “Company”) and all members of the board (the “Board”) of directors (the “Directors”) of the Company warrant that the content of this announcement is true, accurate and complete, and assume joint responsibility on any false record, misrepresentation or material omission as set out herein.

Reference is made to the announcements (the “Announcements”) of the Company relating to (i) 2005 Interest Payment and Share Conversion of A Share Convertible Bonds and (ii) the implementation of 2004 profit appropriation plan and price adjustment of A Share Convertible Bonds, dated 24 June 2005 and 15 July 2005 respectively. Terms used in this announcement shall have the same meanings as those defined in the Announcements unless the context requires otherwise.

Important reminder:

• Conversion Price of A Share Convertible Bonds before the adjustment: RMB7.70 per share (the “Share”) of the Company

• Conversion Price of A Share Convertible Bonds after the adjustment: RMB7.60 per Share

• The commencement date of the adjusted Conversion Price: 28 July 2005

In accordance with the Interim Administrative Measures for Convertible Bonds and the Implementation Measures for Issuance of Convertible Bonds of Listed Companies, and the terms stipulated in the Offering Memorandum, in the event of bonus issue, capitalisation, new issue (other than the increase in the share capital of the Company as a result of the Share Conversion), rights issue and distribution of dividends, the Company shall make adjustments to the Conversion Price in the sequence of the occurrence of the above conditions, and details of the adjustment are as follows:

By assuming the Conversion Price before the adjustment as Po, the number of bonus Shares or Shares being issued upon capitalisation of each Share as N, the number of new Shares or rights issue of each Share as K, the price of the new Shares or rights issue as A, distribution of dividends for each Share as D, the Conversion Price after the adjustment as P (the adjustment value are reserved up to two digits after the decimal place, and rounding the last figure), then

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Dividends distribution: P = Po – D; Bonus issue or capitalisation: P = Po/(1+N); Issue of new Shares or rights issue: P = (Po+AK)/(1+K); Combination of the three items: P = (Po-D+AK)/(1+N+K).

After the Company has implemented the 2004 Profit Appropriation Plan for the distribution of a cash dividend of RMB1.00 per ten Shares, the Conversion Price will be adjusted from RMB7.70 per Share to RMB7.60 per Share starting from 28 July 2005.

As at the date of this announcement, the Board comprises executive Directors: Ms. Ma Baiyu, Mr. An Pindong, Mr. Gu Qifeng, Mr. Wang Zhanying, Mr. Tan Zhaofu and Ms. Fu Yana, and independent non-executive Directors: Mr Wang Xiangfei, Mr. Gao Zongze, and Mr. Ko Poming.

By order of the Board Ma Baiyu Chairman

Tianjin, the People’s Republic of China 21st July 2005

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

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