Date:         Aug 2009

Central China Real Estate Limited ("Central China" or the "Company") is pleased to announce that it has successfully priced its issuance of Convertible Bonds (the “Bonds”) at an aggregate principal amount of HK$765 million on 5 August 2009. Fountain Vest and West Hill (the “Subscribers”), both of which are private equity funds, subscribed HK$687 million and HK$78 million respectively.

The Bonds have a 5-year tenor with coupon rate of 4.9% per annum. The Bonds will be convertible into 247 million shares based on the initial conversion price of HK$3.1, a 29.7% premium above the closing price of HK$2.39 on 4 August 2009. At the same time, the Company has issued 76,097,561 warrants for a term of 5 years. Fountain Vest and West Hill will subscribe 68,338,594 and 7,758,967 warrants respectively. The Subscribers are entitled to subscribe for a maximum of 76,097,561 shares at the initial exercise price of HK$4.1, a 71.5% premium above the closing price of HK$2.39 on 4 August 2009.

The Company estimated that the net proceeds from the issuance of the Bonds of approximately HK$762 million will be applied for the purpose of acquiring minority interests, purchase of land banks and general working capital.

“Amid the current uncertain financial environment, we are able to raise additional capital. With sufficient fund on hand, we are ready for our next phases of expansion in Henan province. The success of this issuance reflects the confidence level of investor in Henan’s property market in the long term as well as the execution capabilities of the management. Moreover, the dilution effect to other public shareholders is less than 3.5% which would be in the best interests of the shareholders as a whole. We believe the successful launch of the bonds will be another milestone in the history of the Company,” said Mr. Wang Tianye, Executive Director and CEO.

“The successful pricing of the issue definitely further strengthen our balance sheet. The issuance also allows us to secure a significant amount of long-term financing at a relatively low finance cost with cash coupon priced at just 4.9%. We expect the profit decline in 2009 is only temporary and we are now well positioned to achieve substantial growth in revenue and net profit beyond 2009,” said Mr. Tang Man Joe, Financial Controller.