Discloseable Transaction

The Stock Exchange of Hong Kong Limited takes no responsibility for the
contents of this announcement, makes no representation as to its accuracy or
completeness and expressly disclaims any liability whatsoever for any loss
howsoever arising from or in reliance upon the whole or any part of the
contents of this announcement.

                         Zhejiang Expressway Co., Ltd.                         

 (A joint stock limited company incorporated in the People's Republic of China 
                            with limited liability)                            
                              (Stock code: 0576)                               

                          Discloseable Transaction
               Further Capital Injection into Zheshang Securities   

The Board announces that on 6 June 2007, Shangsan Co, a subsidiary of the  
Company, entered into an agreement with Zheshang Securities pursuant to    
which Shangsan Co injected a further amount of capital of RMB704,615,400   
(approximately HK$718,707,700) into Zheshang Securities. Together with an  
initial injection of RMB600 million (approximately HK$612 million) into the
capital of Zheshang Securities, Shangsan Co has contributed a total of     
around RMB1,305 million (approximately HK$1,331 million) into the capital  
of Zheshang Securities.                                                    
                                                                           
The Further Capital Injection constitutes a discloseable transaction of the
Company under the Listing Rules.                                           
                                                                           
A circular setting out details of the Further Capital Injection will be    
despatched to the Shareholders as soon as practicable.    
                 

Background

On 6 June 2007, Shangsan Co, a subsidiary of the Company, entered into an
agreement with Zheshang Securities pursuant to which Shangsan Co injected a
further amount of capital of RMB704,615,400 (approximately HK$718,707,700) into
Zheshang Securities by cash. Together with an initial injection of RMB600
million (approximately HK$612 million) into the capital of Zheshang Securities,
Shangsan Co has contributed a total of around RMB1,305 million (approximately
HK$1,331 million) into the capital of Zheshang Securities.

In conjunctive with the offer by Zheshang Securities to Shangsan Co to inject
additional capital into Zheshang Securities, Zheshang Securities also invited
other of its then shareholders to inject additional capital into Zheshang
Securities in proportion to their respective then equity interests in Zheshang
Securities. Immediately before the acceptance of the offers by Shanghai
Telecommunications, Shanghai Transportation and Zhejiang Real Estate, each of
them transferred their remaining shareholding in Zheshang Securities to certain
third parties which are PRC incorporated companies, details of which are set
out in the table below titled "Change in shareholding of Zheshang Securities
pursuant to the Further Capital Injection and Equity Interest Transfers". These
successors together with other shareholders of Zheshang Securities, namely
Shangsan Co, Tonghe Investment and Taizhou State-Owned have taken up the offers
and injected the relevant amounts of capital into Zheshang Securities.

After the Further Capital Injection, the registered capital of Zheshang
Securities increased from RMB520 million to RMB1,520 million and Shangsan Co
owned as to 70.4615% of the capital of Zheshang Securities. The remaining
29.5385% of the capital of Zheshang Securities was owned by other shareholders,
which, to the best of the Directors' knowledge, information and belief and
after having made all reasonable enquiry, are all Independent Third Parties.

Change in shareholding of Zheshang Securities pursuant to the Further Capital
Injection and Equity Interest Transfers

Details of percentage shareholding of Zheshang Securities immediately before
and after the Further Capital Injection and Equity Interest Transfers are as
follows:

                                          Percentage of        Percentage of
                                         holding in the       holding in the
                                         equity capital       equity capital
                                   immediately prior to    immediately after
                                    the Further Capital  the Further Capital
                                          Injection and        Injection and
                                        Equity Interest      Equity Interest
Name of the equity holders                    Transfers            Transfers
                                                                      
Shangsan Co                                    70.4615%             70.4615%
Tonghe Investment                                    4%                   4%
Taizhou State-Owned                                  4%                   4%
Shanghai Telecommunications                         10%                    -
Shanghai Transportation                         7.6924%                    -
Zhejiang Real Estate                            3.8461%                    -
Yiwu Yuzhong Investment                               -                 4.8%
Zhejiang Zhongyi                                      -                   2%
Lishui Hexin Investment                               -                 3.2%
Xizi United                                           -              3.8462%
Lanzhou Xinxing                                       -              3.8462%
Zhejiang Yulong                                       -              2.6923%
Zhejiang Hexin                                        -              1.1538%
                                                                           
                                           －－－－－－－          －－－－－－－
                                                           100%                 100%                            
                                          =============        =============

Note:

(1) Shanghai Telecommunications, before taking up the offer by Zheshang
    Securities, transferred its remaining 10% equity interest in Zheshang
    Securities to Yiwu Yuzhong Investment (4.8%), Zhejiang Zhongyi (2%) and Lishui
    Hexin Investment (3.2%) respectively.

(2) Shanghai Transportation, before taking up the offer by Zheshang Securities,
    transferred its remaining 7.6924% equity interest in Zheshang Securities to
    Xizi United and Lanzhou Xinxing respectively in equal share.

(3) Zhejiang Real Estate, before taking up the offer by Zheshang Securities,
    transferred its remaining 3.8461% equity interest in Zheshang Securities to
    Zhejiang Yulong (2.6923%) and Zhejiang Hexin (1.1538%) respectively.

Funding

The Further Capital Injection was partially funded by internal resources of
Shangsan Co and internal financing arrangements of the Group. Details of
arrangements of the internal financing arrangements of the Group were set out
in an announcement of the Company dated 30 May 2007.

Effective Date of Further Capital Injection

The Further Capital Injection will be effective as and when approval thereof is
obtained from the CSRC.

Impact of the Further Capital Injection to Shangsan Co

Pending approval of the Further Capital Injection, Shangsan Co has contributed
an aggregate amount of around RMB1,305 million (approximately HK$1,331 million)
into the capital of Zheshang Securities. This corresponds to 70.4615% of the
equity interests in Zheshang Securities.

Based on audited accounts of Zheshang Securities, net assets of Zheshang
Securities amount to approximately negative RMB188 million (approximately
negative HK$191 million) and approximately RMB779 million (approximately HK$795
million) as at 31 December 2005 and 2006 respectively.

The audited profits after taxation and extraordinary items of Zheshang
Securities amount to approximately RMB719 million (approximately HK$733
million) for the year ended 31 December 2005. The audited profits after
taxation of Zheshang Securities amount to approximately RMB203 million
(approximately HK$207 million) for the year ended 31 December 2006.

* the accounts for the year ended 31 December 2005 are prepared in accordance
  with accounting standards commonly accepted in the PRC, whilst those for the
  year ended 31 December 2006 are prepared in accordance with Hong Kong Financial
  Reporting Standards issued by the Hong Kong Institute of Certified Public
  Accountants.

Reasons of the Transaction

The Further Capital Injection will increase the net capital of Zheshang
Securities and, the Directors believe will set out a more solid foundation for
its involvement in more advanced trading activities, including but not limited
to the trading in share index futures.

By expanding the scope of business of Zheshang Securities, Zheshang Securities
will become more competitive in the capital market of the PRC.

Discloseable Transaction

The Further Capital Injection constitutes a discloseable transaction of the
Company under the Listing Rules.

As some of the applicable percentage ratios in respect of the Further Capital
Injection is more than 5% but less than 25%, such capital injection constitutes
a discloseable transaction under the Listing Rules. A circular setting out
details of the Further Capital Injection will be despatched to the Shareholders
as soon as practicable.

Zheshang Securities is engaged in securities trading business, underwriting of
securities offering, investment advisory and other related activities as
authorized by the CSRC from time to time.

Information of the Group and Shangsan Co

The Company was incorporated on 1 March 1997 in the PRC and is a joint stock
limited company with a registered share capital of RMB4,343,114,500
(approximately HK$4,429,976,790) at present. The main business of the Group is
investment in, development, operation, management, and collection of tolls, of
the Shanghai-Hangzhou-Ningbo Expressway and the Shangsan Expressway, both in
the Zhejiang Province of the PRC, and businesses ancillary to the operation of
the expressways, such as billboard advertising and operation of service areas
on the expressways.

Apart from the 70.4615% shareholding interest in Zheshang Securities, Shangsan
Co owns and operates the Group's business relating to collection of road tolls
in respect of the Shangsan Expressway.

Definitions

In this announcement, the following expressions have the meanings set out below
unless the context requires otherwise.

"associate"            has the same meaning given to it under the Listing  
                       Rules;                                              
                                                                           
"Company"              Zhejiang Expressway Co., Ltd.;                      

"CSRC"                 China Securities Regulatory Commission ;            
                                                                           
"Directors"            the directors of the Company;                       
                                                                           
"Further Capital       the contribution by, amongst others, Shangsan Co of 
Injection"             an amount of RMB704,615,400 into the capital of     
                       Zheshang Securities;                                
                                                                           
"Group"                the Company and its subsidiaries;                   
                                                                           
"HK$"                  Hong Kong dollars, the lawful currency of the Hong  
                       Kong Special Administrative Region;                 
                                                                           
"Independent Third     Independent third party/parties not connected with  
Party/Parties"         the directors, supervisors, substantial shareholders
                       of the Company or any of its subsidiaries or their  
                       respective associates;                              
                                                                           
"Lanzhou Xinxing"      Lanzhou Xinxing Heating Co., Ltd., a PRC            
                       incorporated limited liability company;             
                                                                           
"Lishui Hexin          Lishui Hexin Investment Co., Ltd., a PRC            
Investment"            incorporated limited liability company;             
                                                                           
"Listing Rules"        the Rules Governing the Listing of Securities on the
                       Stock Exchange of Hong Kong Limited;                
                                                                           
"percentage ratios"    has the meaning as ascribed to it under the Listing 
                       Rules, as applicable to the transactions pursusnt to
                       the aforementioned further capital injection and the
                       Loan Agreement respectivley;                        
                                                                           
"PRC"                  the People's Republic of China;                     
                                                                           
"RMB"                  renminbi, the lawful currency of the PRC;           
                                                                           
"Shanghai              Shanghai National Telecommunications Co., Ltd., a   
Telecommunications"    PRC incorporated limited liability company;         
                                                                           
"Shanghai              Shanghai Jiao Yun Co., Ltd., a PRC incorporated     
Transportation"        limited liability company;                          
                                                                           
"Shangsan Co"          Zhejiang Shangsan Expressway Co., Ltd., a           
                       PRC-incorporated company;                           
                                                                           
"Shareholders"         the shareholders of the Company;                    
                                                                           
"Taizhou State-Owned"  Taizhou State-owned Assets Operations Co., Ltd., a  
                       company solely owned by the State of the PRC:       
                                                                           
"Tonghe Investment"    Tonghe Investment Holdings Co., Ltd., a PRC         
                       incorporated limited liability company;             
                                                                           
"Xizi United"          Xizi United Holding Co., Ltd., a PRC incorporated   
                       limited liability company;                          
                                                                           
"Yiwu Yuzhong          Yiwu Yuzhong Investment Co., Ltd., a PRC            
Investment"            incorporated limited liability company;             
                                                                           
"Zhejiang Hexin"       Zhejiang Hexin Investment Management Co., Ltd., a   
                       PRC incorporated limited liability company;         
                                                                           
"Zhejiang Real Estate" Zhejiang Hexin Estate Co., Ltd., a PRC incorporated 
                       limited liability company;                          
                                                                           
"Zhejiang Yulong"      Zhejiang Yulong Industrial Co., Ltd., a PRC         
                       incorporated limited liability company;             
                                                                           
"Zhejiang Zhongyi"     Zhejiang Zhongyi Group Co., Ltd., a PRC incorporated
                       limited liability company; and                      
                                                                           
"Zheshang Securities"  Zheshang Securities Co., Ltd., a limited liability  
                       company incorporated in the PRC in May 2002.        

The exchange rate used for reference purpose in this announcement is HK$1.02 to
RMB1.00.

                                                       By Order of the Board        
                                                          Zhang Jingzhong  
                                                         Company Secretary 

Hangzhou, the PRC, 27 June 2007

As at the date of this announcement, the executive Directors are: Messrs. Geng
Xiaoping, Fang Yunti, Zhang Jingzhong and Jiang Wenyao; the non-executive
Directors are: Messrs. Zhang Luyun and Zhang Yang; and the independent
non-executive Directors are: Messrs. Tung Chee Chen, Zhang Junsheng and Zhang
Liping.