Anticipated changes to properties' carrying value (5068G)

TIDMCGA

RNS Number : 5068G

China Gateway International PLC

12 May 2011

FOR IMMEDIATE RELEASE 12 May 2011

CHINA GATEWAY INTERNATIONAL PLC

("China Gateway", "CGI" or "the Company")

Anticipated changes to the carrying value of properties

The Company is in the process of finalising its audited accounts for the year ended 30 November 2010, which it expects to publish by the end of this month.

It is likely that these accounts will include a substantial write-down in the value of the Manston properties to GBP3.49 million following delays in concluding a Section 106 Agreement and the inability to conclude seat sales in the absences of full planning permission. This will be reflected in a substantial charge to the Profit and Loss Account.

Whilst the Directors believe that the granting of planning permission on the Dover properties at Western Heights and Farthingloe would result in an increase in value, as current assets no increase will be recorded in the accounts, save for the remaining amounts previously provided to restore these properties to a carrying value of GBP11.6 million.

The net write-down in properties will place the Company in a position of negative equity and therefore the Company will be including an agenda item at the forthcoming Annual General Meeting (details of which will be announced together with the publication of results) as required under section 656 of the Companies Act 2006 for the purpose of considering whether any, and if so what, steps should be taken to deal with the situation.

As previously reported, the Company retains the support of its bankers.

Full details will be included in the audited accounts when published.

Contact: Ken Wills, China Gateway International PLC on + 44 (0) 1843 822444

Roland Cornish, Beaumont Cornish Limited on + 44 (0) 20 7628 3396

This information is provided by RNS

The company news service from the London Stock Exchange

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