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

Jun 25, 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 2007 interest payment of the A Share Convertible Bonds of the Company

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 warrant the truth, accuracy and completeness of the content in this announcement, and accept joint responsibilities for any false record, misrepresentation or material omission in this announcement.

Important Notice

1. The interest of the A share convertible bonds (the “ A Share Convertible Bonds ”) of the Company is calculated based on its nominal value from 1 July, 2004 (the “ Interest Commencement Date ”), and the nominal interest rate of which for the third year is 3.76%;

2. Year covered: from 1 July 2006 to 30 June 2007;

3. Interest before tax for each of the A Share Convertible Bonds with a nominal value of RMB 1,000 is RMB37.6. Interest after tax for each of the A Share Convertible Bonds with a nominal value of RMB1,000 is RMB30.08;

4. The Registration Date for interest payment is 29 June 2007;

5. The ex-interest date is 2 July 2007;

6. The interest payment date is 6 July 2007.

As at 30 June 2007, it has been three years since the issue date (i.e. 1 July 2004) of the A Share Convertible Bonds namely “Tianjin Convertible Bonds”. In accordance with the terms stipulated in the “Prospectus of the issue of the A Share Convertible Bonds” (the “ Prospectus ”) of the Company, the arrangement for the payment of interest was announced as follows:

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(1) Interest rate and interest payable

In accordance with the terms stipulated in the Prospectus, the interest of the A Share Convertible Bonds issued by the Company shall be calculated from the Interest Commencement Date, and the nominal interest rate for the third year is 2.1% p.a.. It is also provided that if the statutory interest rate for five-year term deposit of the People’s Republic of China (the “ PRC ”) is above 2.79% p.a. on the interest payment registration date for the third interest year, the third year nominal interest rate for the A Share Convertible Bonds will be adjusted to 76% of such statutory interest rate for five-year term deposit of the PRC on the Registration Date, and the nominal interest rate for the remaining years will remain unchanged (the adjusted interest level are reserved up to two digits after the decimal place, and rounding the last figure). As the People’s Bank of China has increased the basic interest rate of financial institutions since 19 May 2007, the statutory interest rate for five-year term deposit of the PRC was increased to 4.95% p.a.. As such, the nominal interest rate of the A Share Convertible Bonds was adjusted to 3.76% p.a. from the original of 2.1% p.a. for the third year and the interest for each of the A Share Convertible Bonds with a nominal value of RMB1,000 is RMB37.6 (tax inclusive). For the individual shareholders of the A Share Convertible Bonds, the actual interest to be distributed to each of the A Share Convertible Bonds with a nominal value of RMB1,000 is RMB30.08 after deduction of income tax at the rate of 20% to be paid by the Company on behalf of the Shareholders. For institutional investors holding the A Share Convertible Bonds, the actual interest to be distributed to each of the A Share Convertible Bonds with a nominal value of RMB1,000 is RMB37.6.

During the term of the A Share Convertible Bonds, the formula for the calculation of the interest payable for each year based on the nominal interest rate is as follows:

I = B x i

• I: annual interest payable

• B: total nominal value of the A Share Convertible Bonds held by the A Share Convertible Bonds holders

• i: nominal interest rate as determined pursuant to section (1) above

The interest payable shall be rounded up to RMB cents. Holders of the A Share Convertible Bonds shall be responsible for the taxes arising from the interest income earned.

• (2) The Registration Date for interest payment, the ex-interest date and the interest payment date

  1. The Registration Date for interest payment is 29 June 2007;

  2. The ex-interest date is 2 July 2007;

  3. The interest payment date is 6 July 2007.

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• (3) Persons qualifying to receive the interest

Person qualified for the interest: All holders of the A Share Convertible Bonds whose names appear on the register as maintained at China Securities Registration and Clearing Corporation Limited, Shanghai Branch after the close of trading of the Shanghai Stock Exchange (“ Shanghai Stock Exchange ”) as at 29 June 2007.

• (4) Matters relating to interest payment

Holders of the A Share Convertible Bonds whose names appear on the register at the Shanghai Stock Exchange after the close of trading on the Registration Date for interest payment shall be qualified to receive the interest of the A Share Convertible Bonds for the current year. The Company will pay the interest for the current year within five trading days after the Registration Date for interest payment.

The Company will appoint China Securities Registration and Clearing Corporation Limited, Shanghai Branch as its agent to pay for the interest of the A Share Convertible Bonds. Holders of the A Share Convertible Bonds who have completed the designated transaction can collect the interest on the fifth trading day after the Registration Date for interest payment, i.e. 6 July 2007, at the designated securities sales department. The interest payable to the holders of the A Share Convertible Bonds who have not completed the designated transaction will be held in custody by China Securities Registration and Clearing Corporation Limited, Shanghai Branch. Upon completion of the designated transaction, they can collect the interest at the designated securities sales department.

If any investor wishes to fully understand all the terms in relation to interest payable on the A Share Convertible Bonds, please read the Prospectus carefully. A summary of the Prospectus was published in China Securities News and Shanghai Securities News on 26 June 2004. Investors may also access the full text and relevant terms of the Prospectus at the website of Shanghai Stock Exchange (http://www.sse.com.cn).

• (5) Enquiries

Department for answering enquiries: Office of Secretary to the Board, Tianjin Capital Environmental Protection Company Limited

Tel. number: 8622-23930128 Fax number: 8622-23930126

By order of the Board Ma Baiyu Chairman

Tianjin, the PRC 25 June 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 Xuangfei, Mr. Gao Zongze, and Mr. Ko Poming.

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