Rego Interactive Co., Ltd — Capital/Financing Update 2007

Dec 20, 2007

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

(Stock Code: 1065)

ANNOUNCEMENT IN RELATION TO THE ACQUISITION AND LICENSED OPERATION OF TWO SEWAGE WATER TREATMENT PLANTS IN XIAN

This announcement is made pursuant to Rule 13.09 of the Rules Governing the Listing of Securities (the “Listing Rules”) on The Stock Exchange of Hong Kong Limited (“Hong Kong Stock Exchange”).

Tianjin Capital Environmental Protection Company Limited (the “Company”) and all members of the board (the “Board”) of directors (the “Directors”) of the Company hereby warrant the truth, accuracy and completeness of the contents in this announcement, and accept joint responsibilities for any false information, misleading statements or material omission in this announcement.

On 20 December 2007, the Company convened the fourteenth meeting of the Fourth Board by way of facsimile, during which the “Resolution regarding the acquisition and licensed operation of two sewage treatment plants in Xian” was considered and passed by all Directors. The meeting complied with the relevant requirements under the Company Law of the People’s Republic of China (the “PRC”) and the Articles of Association of the Company.

In order to explore the market, the Company has participated in the tender of the two sewage water treatment plants project in Xian (Xian Sewage Water Treatment Plant and Xian Beishiqiao Purification Center), and ultimately won the tender. Upon winning the tender, the Company intends to establish a wholly-owned project company to acquire and operate the two sewage water treatment plants under license. The total sewage water treatment capacity of the two sewage water treatment plants is 310,000 cubic meters per day, the term of licensed operation is for 25 years, and the total asset acquisition amount is RMB643 million.

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The Company is in the course of establishing the project company. Upon the establishment of the project company, the project company will enter into a formal “Licensed Operation Agreement” with Xian Municipal Administration Committee, an “Asset Transfer Agreement” and a “Sewage Water Treatment Service Agreement” with Xian Infrastructure Investment and Construction Company, and a “Staff Reallocation Agreement” with Xian Sewage Water Treatment Company Limited. By then, the Company will make disclosures on the situation of the project company and the above four agreements in a timely manner.

By order of the Board Ma Baiyu Chairman

Tianjin, the PRC 20 December 2007

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.

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