CHINA INTERNATIONAL MARINE CONTAINERS (GROUP) CO.

, LTD
(Incorporated in the Peoples Republic of China)

ANNOUNCEMENT

The Board of directors of China International Marine Containers (Group) Co., Ltd. (the Company) announced that on 3 Dec 1998, the Company concluded a principal agreement (the Agreement) with Korea Hyundai Precision Industry Corporation (Hyundai Precision Industry) and Administration Committee of Jiaozhou City Economical & Technical Development Zone of Shandong Province (Jiaozhou ETDZ) and China International Marine Containers (Hong Kong) Ltd. (CIMCHK) and CIMC Holdings (B.V.I.) Limited (CHL) in Shgenzhen City, the Peoples Republic of China. The Agreement is about establishing Qindao CIMC Reefer Containers Co., Ltd. (A Company) and Qingdao CIMC Containers Co., Ltd. (B Company) in Jiaozhou ETDZ, Qingdao City, the Peoples Republic of China. According to the Listing Regulations of the Shenzhen Stock Exchange, Provision 7.2.2 and 7.2.3, the Board now announced the relative content as follows: 1. Hyundai Precision Industry is a corporation, which take automobile & airplane manufacturing, heavy machine equipment manufacturing, container manufacturing, civil engineering and import & export trade as its main business. Its registered address is 140-2, kye-dong, chongro-ku, Seoul, Korea. Jiaozhou ETDZs address is Yunxi Mansion, 285 Lanzhou Road East, Jiaozhou City of Qingdao City, Shandong Province. Its main business is attracting merchant and introducing into capital. CIMCHK is a corporation whose main business is container sales and investment and holding. Its registered address is Unit 3101-2, Vicwood Plaza, 199 Des Voeux Road Central, Hong Kong. CIMCHK is a wholly-owned subsidiary of the Company. CHL is a corporation whose main business is investment and holding and its registered address is Tridend Chamber, P.O. Box 146, Road Town, Tortola, British Virgin Islands. It is a wholly-owned subsidiary of CIMCHK. 2. According to the Agreement, the Company, Hyundai Precision Industry, Jiaozhou ETDZ and CIMCHK will establish A Company. The registered capital is to be 24,060,000US$, among which the Company and CIMCHK will totally contribute 18,100,000US$, account for 75.23% of the total stake of A Company. The stake which is based on RMB and US$ respectively will have been received by A Company at three times during one year after A Company acquires its operation license. The principal business of A Company will be manufacture and sale of reefer containers and the production capacity is predicted to achieve 6,000 reefer containers a year. The above-mentioned stake of the Company will come from its own funds. 3. According to the Agreement, the Company, Hyundai Precision Industry,
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Jiaozhou ETDZ and CHL will establish B Company. The registered capital is to be 20,300,000US$, among which the Company and CHL will totally contribute 16,480,000US$, account for 81.19% of the total stake of B Company. The stake which is based on RMB and US$ respectively will have been received by B Company at three times during one year after B Company acquires its operation license. The above-mentioned stake of the Company will come from its own funds. 4. According to the Agreement, after A Company and B Company acquired their operation licenses, A Company will be assigned the total long-term assets of Qingdao Hyundai Reefer Containers Co., Ltd. (C Company) at the cost of 19,500,000US$. B Company will be assigned the total long-term assets of Qingdao Hyundai Containers Co., Ltd. (D Company) at the cost of 8,500,000US$. B Company will also be assigned the whole buildings and other accessory equipment owned by Jiaozhou ETDZ and being leased by C Company and D Company at the cost of 6,180,000US$. 5. According to the Agreement, after A Company and B Company acquired their operation licenses, A Company will be assigned the necessary current assets of C Company at market value. B Company will be assigned the necessary current assets of D Company at market value. 6. According to the Agreement, during 360 days after A Company and B Company acquired their operation licenses, Hyundai Precision Industry will finish canceling of C Company and D Company. 7. Hyundai Precision Industry owns 100% stake of C Company and D Company at present. Hyundai Precision Industry will prompt C Company and D Company to entrust the Company with full authority to take in charge of the selling business of C Company and D Company. After the agreement of transfer of long assets between A Company and C Company, B Company and D Company is assigned, C Company and D Company will immediately stop all activities of production and sales. The Board of the Company believes that after the transactions of the Agreement is completed, the container manufacturing business of the Company and its subsidiary (the Group) will get farther increase and the Groups market share will be farther boosted. This will bring positive effects to the future profit of the Company.

10 Dec 1998 The Board of Directors China International Marine Containers (Group) Co., Ltd.
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