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

Aug 22, 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 REGARDING ADJUSTMENT OF REDEMPTION PRICE OF THE COMPANY’S A SHARE CONVERTIBLE BONDS

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.

The Company published the “First, Second and Third Announcements regarding Redemption of the Company’s A Share Convertible Bonds “Tianjin Convertible Bonds”” on 31 July 2007, 1 August 2007 and 2 August 2007 respectively. The Company will redeem all the Company’s A share convertible bonds (“ A Shares Convertible Bonds ”) which are still outstanding after the close of trading on the redemption registration date (27 August 2007) at a price based on 102% of the nominal value of the A Share Convertible Bonds plus interests in the current interest accruing year. The original redemption price was RMB106.70/bond (including interest for the current period (net of tax) of RMB4.70).

As required under the relevant provisions in the Prospectus of the Convertible Bonds of Tianjin Capital Environmental Protection Company Limited, if the national statutory five year deposit interest rate on the interest payment registration date of the fourth interest accruing year is higher than 2.79%, then the nominal interest rate of the fourth year of the A Share Convertible Bonds will be adjusted to 90% of the statutory five year deposit interest rate on the interest payment registration date, the level of the adjusted interest rate to be rounded to 2 decimal points. As the People’s Bank of China raised the base interest rates on deposits of financial institutions on 22 August 2007 and the national statutory five year deposit interest rate was adjusted to 5.49%, the nominal annual interest rate of A Share Convertible Bonds for the fourth year was accordingly adjusted to 4.94%, that is, the interest of each A Share Convertible Bond of nominal value of RMB100 is RMB4.94 (tax inclusive).

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Pursuant to the above adjustment, the redemption price of the Company’s A Share Convertible Bonds was adjusted to RMB106.94 (including interest for the current period (net of tax) of RMB4.94). Of these, a 20% withholding tax in respect of personal income tax of individual holders shall be deducted by the Company, and actual redemption price net of tax will be RMB105.95/bond. No withholding income tax shall be deducted in respect of institutional investors, and actual redemption price will be RMB106.94/bond.

By order of the Board Ma Baiyu Chairman

Tianjin, the PRC 22 August 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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