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

Jul 19, 2005

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

(Stock code: 1065)

Indicative announcement in relation to the result in respect of the tender on the Hangzhou Qige Sewage Treatment Plant

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 “Listing Rules”).

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.

On 18 July 2005, the Company received a notice of the assessment results regarding the tender from the Investment Invitation Leading Team Office (hereinafter referred to as the “Investment Office”) of the Hangzhou Qige Sewage Treatment Plant (the “Project”). Based on the assessment results and recommendations in respect of the tender released by the tender assessment committee of the Project, the Investment Office has listed the Company as the first candidate for winning the tender of the Project (there are two candidates in respect of the tender on the Project).

In order to speed up the commercialization of municipal public utilities, and to enhance the operation efficiency of municipal public utilities, the Hangzhou People’s Government decided to transfer the ownership of assets in respect of Hangzhou Qige Sewage Treatment Plant Phase I (400,000 tonnes/day) and Phase II (200,000 tonnes/day) to the project company, a joint venture to be established by the investor to be selected through public tender and Hangzhou City Construction Property Operation Company Limited (being independent of and not connected with the Directors, chief executive, substantial shareholders or management shareholders of the Company, its subsidiaries or their respective associates (as defined in the Listing Rules) by way of asset transfer-operation-handover, and to grant an operation license to the Project Company for the operation of the Hangzhou Qige Sewage Treatment Plant during the term of the license, and upon the expiry of the license operation term, to hand over the Hangzhou Qige Sewage Treatment Plant in perfect conditions to the Hangzhou Urban Administration Bureau or specified authority at nil consideration. The term of the operation license is for 25 years.

Since the Company has been listed as the first candidate for winning the tender of the Project, the Investment Office will engage in further negotiations with the Company. If the Company wins the tender of the Project and enters into a joint venture agreement with the

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Hangzhou City Construction Property Operation Company Limited, it may constitute a notifiable transaction of the Company under the Listing Rules. Further announcement will be made by the Company as and when necessary and in compliance with the Listing Rules and the relevant laws and regulations in the People’s Republic of China.

As the Investment Invitation Leading Team has yet to announce the final results of the tender of the Project, the Project may or may not proceed. The Company advises its shareholders and potential investors to exercise caution when dealing in the shares of the Company.

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 Xuangfei, Mr. Gao Zongze, and Mr. Ko Poming.

By order of the Board Ma Baiyu Chairman

Tianjin, the People’s Republic of China 19th July 2005

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

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