2010 Third Quarterly Results Announcement

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Limited take no responsibility for the contents of this announcement, make no
representation as to its accuracy or completeness and expressly disclaim 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)                               

                   2010 Third Quarterly Results Announcement                   

This 2010 third quarterly results announcement of Zhejiang Expressway Co., Ltd.
(the "Company") is made pursuant to the Rules Governing the Listing of
Securities on The Stock Exchange of Hong Kong Limited and has been prepared in
compliance with section 4.3 of the Disclosure and Transparency Rules of the
United Kingdom Listing Authority.

The audit committee of the Company has reviewed the results of the Company and
its subsidiaries (collectively the "Group") for the nine months ended September
30, 2010 (the "Period"). Set out below are the Group's unaudited condensed
consolidated statement of comprehensive income, condensed consolidated
statement of financial position and condensed consolidated statement of cash
flow for the Period together with the comparative figures for 2009:



CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)

                                                          For the nine months  
                                                          ended September 30,  
                                                               2010        2009
                                                  Notes     Rmb'000     Rmb'000
                                                                      (Restated)
                                                                               
Revenue                                             1     4,794,815   4,396,626
Operating costs                                          (2,695,599) (2,170,557)
                                                         ----------- -----------
Gross profit                                              2,099,216   2,226,069
Securities investment gains                                  99,519      23,132
Other income                                        2       125,364      97,990
Administrative expenses                                     (47,278)    (48,154)
Other expenses                                              (17,943)   (116,804)
Share of losses of associates                                (9,064)    (22,892)
Share of profit of a jointly controlled entity                   --      21,254
Finance costs                                               (69,317)    (52,968)
                                                         ----------- -----------
Profit before tax                                         2,180,497   2,127,627
Income tax expenses                                        (555,841)   (533,165)
                                                         ----------- -----------
Profit for the Period                                     1,624,656   1,594,462
                                                         ----------- -----------
                                                                               
Other comprehensive income                                                     
                                                                               
Available-for-sale financial assets:                                           
  - Fair values gain during the Period                        9,927       2,099
  - Reclassification adjustments for cumulative             (24,856)         --
    gain included in profit or loss upon disposal           
Gain from acquisition of non-controlling interest 
 in subsidiaries                                             15,427          --
Income tax relating to components of other
 comprehensive income                                          (125)       (525)
                                                         ----------- -----------
Other comprehensive income for the Period 
 (net of tax)                                                   373       1,574
                                                         ----------- -----------
Total comprehensive income for the Period                 1,625,029   1,596,036
                                                         =========== ===========
                                                                               
Profit for the Period attributable to:                                         
Owners of the Company                                     1,337,469   1,245,800
Non-controlling interests                                   287,187     348,662
                                                         ----------- -----------
                                                          1,624,656   1,594,462
                                                         =========== ===========
                                                                               
Total comprehensive income for the Period                                      
attributable to:                                                               
Owners of the Company                                     1,343,231   1,246,617
Non-controlling interests                                   281,798     349,419
                                                         ----------- -----------
                                                          1,625,029   1,596,036
                                                         =========== ===========
                                                                               
Earnings per Share-basic                            3    30.80 cents 28.68 cents
                                                         =========== ===========



CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

                                                           As at          As at
                                                    September 30,   December 31,
                                                            2010           2009
                                                         Rmb'000        Rmb'000
                                                       Unaudited        Audited
                                                                               
Non-current Assets                                    14,036,893     14,499,001
                                                     -----------    -----------
Current Assets                                        15,979,596     17,903,780
Current Liabilities                                   11,367,260     13,931,561
                                                     -----------    -----------
Net Current Assets                                     4,612,336      3,972,219
                                                     -----------    -----------
Total Assets Less Current Liabilities                 18,649,229     18,471,220
                                                     -----------    -----------
Non-current Liabilities                                1,361,606      1,406,366
                                                     -----------    -----------
                                                      17,287,623     17,064,854
                                                     ===========    ===========
                                                                               
Capital and Reserves                                                           
  Share capital                                        4,343,115      4,343,115
  Reserves                                            10,097,957      9,840,505
                                                     -----------    -----------
Equity attributable to owners of the Company          14,441,072     14,183,620
Non-controlling interests                              2,846,551      2,881,234
                                                     -----------    -----------
                                                      17,287,623     17,064,854
                                                     ===========    ===========



CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW (UNAUDITED)

                                                            For the nine months
                                                            ended September 30,
                                                               2010        2009
                                                            Rmb'000     Rmb'000
                                                                               
Net cash from operating activities                        1,706,432   2,045,019
Net cash used in investing activities                      (584,530)   (159,941)
Net cash used in financing activities                    (1,091,773) (1,253,955)
                                                         ----------- -----------
Net increase in cash and cash equivalents                    30,129     631,123
Cash and cash equivalents at beginning of the Period      5,049,003   3,736,945
                                                         ----------- -----------
Cash and cash equivalents at end of the Period            5,079,132   4,368,068
                                                         =========== ===========



Notes:

1. Revenue
   An analysis of the Group's revenue, net of discounts and taxes, for the Period
   is as follows:

                                                            For the nine months
                                                            ended September 30,
                                                               2010        2009
                                                            Rmb'000     Rmb'000
                                                          Unaudited   Unaudited
                                                                               
   Toll operation revenue                                 2,586,138   2,314,557
   Service area business revenue                          1,136,643     842,258
   Advertising business revenue                              56,613      56,426
   Commission income from securities operation              862,791   1,063,005
   Interest income from securities operation                152,596     118,991
   Others                                                        34       1,389
                                                         ----------- -----------
   Total revenue                                          4,794,815   4,396,626
                                                         =========== ===========

2. Other Income

                                                            For the nine months
                                                            ended September 30,
                                                               2010        2009
                                                            Rmb'000     Rmb'000
                                                          Unaudited   Unaudited
                                                                               
   Interest income on bank balances and entrusted
    loan receivables                                         35,276      17,455
   Rental income                                             46,185      42,168
   Net exchange gain                                          8,312         474
   Towing income                                             11,676      11,812
   Interest income from structured deposit                      136       3,114
   Others                                                    23,779      22,967
                                                         ----------- -----------
   Total                                                    125,364      97,990
                                                         =========== ===========

3. Earnings Per Share

   The calculation of the basic earnings per share is based on profit attributable
   to owners of the Company for the Period of Rmb1,337,469,000 (September 30,
   2009: Rmb1,245,800,000) and the 4,343,114,500 shares (2009: 4,343,114,500
   shares) in issue during the Period.

   No diluted earnings per share have been calculated as there were no potential
   dilutive ordinary shares in issue in both periods.

4. Provisions

   Subsequent to the relevant disclosure made in the Company's 2009 annual report
   (pages 105 - 106) relating to "Provisions", as at the date of this
   announcement, there was no material change for the Period save as disclosed
   below.

   Prior to the restructuring of Zheshang Securities Co., Ltd. ("Zheshang
   Securities") by the Company, the original person-in-charge of one of the Sales
   Department under Zheshang Securities illegally misappropriated customers'
   deposits and funds, thereby causing losses to the relevant customers. Such
   losses have been fully settled in the current period.



BUSINESS REVIEW

Judging from the rapid growth in major demands in respect of investment,
consumption and import and export, we have witnessed signs of stabilization on
the economic slowdown in the third quarter of this year. Although the growth of
the Chinese economy was still declining moderately in the third quarter, the
decline was narrowing gradually and the national GDP for the third quarter saw
an increase of 9.6% year-on-year. Zhejiang Province's economic growth during
the Period picked up dramatically after a slower growth in the second quarter,
with key economic indicators soaring above expected growth levels and the
slowdown rate decreasing significantly. The province's GDP for the first three
quarters of the year increased by 12.5% over the same period last year.

Benefiting from the upward momentum of the current macro-economy, the Group's
two expressways saw relatively favorable trend of organic growth on their
traffic volumes during the Period. The Group realized a total income of
Rmb4,943.27 million during the Period, representing an increase of 8.8%
year-on-year. Of the total income, Rmb2,671.34 million was attributable to the
two main expressways operated by the Group, representing 54.0% of the total
income; Rmb1,204.98 million was attributable to toll road-related businesses of
the Group, representing 24.4% of the total income; and the securities business
generated an income of Rmb1,066.95 million for the Group, representing 21.6% of
the total income.

Toll Road Operations

As the slowdown in economic growth of the province began to stabilize,
automobile sales surged rapidly and the ownership of small vehicles increased,
the organic growth rates of traffic volumes on the Group's two expressways
remained at high levels during the Period.

The completion of the closure construction on the Shanghai Section of the
Shanghai-Hangzhou Expressway at the beginning of this year as well as the
implementation of the toll-by-weight policy since April 2010 have brought
positive effects to the toll revenue of the Group. Meanwhile, the Shanghai Expo
which was held for six months from May to October had also slightly boosted
traffic volumes on the two expressways of the Group. Nonetheless, the opening
of the Zhuyong Expressway on 22 July 2010 has brought negative impacts of
various degrees to the two expressways of the Group, in particular causing
traffic diversions from the Shangsan Expressway.

Despite having a mild negative impact on the Hangzhou-Ningbo Section of the
Shanghai-Hangzhou-Ningbo Expressway, the opening of the Zhuyong Expressway has
brought certain positive impact on the Shanghai-Hangzhou Expressway. Meanwhile,
the diversions caused to Shangsan Expressway, being the most affected amongst
the expressways, have also stablilized.

The average daily traffic volume in full-trip equivalents for the
Shanghai-Hangzhou-Ningbo Expressway was 39,656 during the Period, an increase
of 14.4% year-on-year. In particular, the average daily traffic volume in
full-trip equivalents on the Shanghai-Hangzhou Section of the expressway was
40,701, an increase of 25.4% year-on-year, while the average daily traffic
volume in full-trip equivalents on the Hangzhou-Ningbo Section was 38,909, an
increase of 7.4% year-on-year. The average daily traffic volume in full-trip
equivalents on the Shangsan Expressway was 16,723 during the Period, a decrease
of 12.2% year-on-year.

During the Period, toll income from the Shanghai-Hangzhou-Ningbo Expressway
amounted to Rmb2,106.51 million, representing an increase of 16.3%
year-on-year, while toll income from the Shangsan Expressway amounted to
Rmb564.83 million, a 2.8% drop year-on-year.

Toll Road-related Businesses

The Company also operates certain toll road-related businesses along its
expressways through its subsidiaries and associated companies, including gas
stations, restaurants and shops in the service areas, as well as roadside
advertising and vehicle service businesses.

Benefiting from the stabilizing macro-economy, the rapid growth in vehicle
ownership in the province and the holding of the Shanghai Expo, traffic volumes
on the Group's two expressways recorded growth during the Period and the
consumption sentiment of travellers in the service areas was given a boost.
Meanwhile, both sales volume and prices of petroleum products soared, lifting
the income of the gas stations, and in turn boosting the income of the service
areas. As a result, income from the toll road-related businesses amounted to
Rmb1,216.66 million during the Period, representing a year-on-year increase of
32.1%.

Owing to the fact that employees of a State-owned enterprise are not allowed to
hold shares of any subsidiary of the enterprise, the Company acquired in
aggregate the 49% interests in Zhejiang Expressway Investment Development Co.,
Ltd. ("Development Company") from the middle-level and senior management of the
Company during the period between August 13 and October 20, 2010, and
Development Company has become a wholly-owned subsidiary of the Company since
then.

Securities Business

Despite a warming up of China's securities market in the third quarter, trading
volume did not show an optimistic sign due to a strong wait-and-see sentiment.
Although the market share of Zheshang Securities Co., Ltd. ("Zheshang
Securities") has been rising quarter-by-quarter, due to more intense
competition in the brokerage business, average commission rates still kept
decreasing. Faced with an unfavorable external environment, Zheshang Securities
has been actively expanding its businesses in futures dealing, investment
banking and asset management, and has obtained satisfactory results, thereby
moderating to a certain degree the decline in profits of the businesses as a
whole.

During the Period, Zheshang Securities recorded an operating income of
Rmb1,066.95 million, representing a decrease of 14.0% year-on-year. Of this
income, brokerage commission income amounted to Rmb914.35 million, a
year-on-year decrease of 18.5%; and bank interest income amounted to Rmb152.60
million, a year-on-year increase of 28.2%. In addition, Zheshang Securities
invested more than 80% of its proprietary securities business in relatively
low-risk bonds during the Period in order to control risks. As a result, an
income of Rmb99.39 million was accounted for in the condensed consolidated
statement of comprehensive income.

In order to further expand the net capital of Zheshang Securities so as to
venture into securities margin trading business, Zhejiang Shangsan Expressway
Co., Ltd. ("Shangsan Company') (a 73.625% owned subsidiary of the Company) made
further capital injection into Zheshang Securities on October 20, 2010. After
the announcement of the capital injection project, as another minority
shareholder of Zheshang Securities reduced its amount of contribution, Shangsan
Company increased its capital contribution amount in Zheshang Securities by the
corresponding amount. Accordingly, Shangsan Company further injected an amount
of Rmb862 million into Zheshang Securities. Together with the initial
contribution to Zheshang Securities, Shangsan Company has already contributed a
total of Rmb2,035 million into Zheshang Securities. After the said capital
injection, Shangsan Company owns a 70.8% equity interest of Zheshang
Securities.

Long-term Investments

During the Period, benefiting from the increases in retail prices and sales of
petroleum, Zhejiang Expressway Petroleum Development Co., Ltd. (a 50% owned
associate of the Company) realized sales income of Rmb2,533.53 million,
representing an increase of 35.0% year-on-year, and net profit of Rmb15.55
million, representing an increase of 11.8% year-on-year.

Zhejiang Jinhua Yongjin Expressway Co., Ltd. (a 23.45% owned associate of the
Company) operates the 69.7km Jinhua Section of the Ningbo-Jinhua Expressway.
During the Period, due to the stabilization and recovery of the domestic
economy and the implementation of the toll-by-weight policy, both traffic
volume and toll revenue of that section of the expressway recorded satisfactory
growth. During the Period, the average daily traffic volume in full-trip
equivalents on the section was 9,133; while toll income amounted to Rmb137.66
million, an increase of 37.4% year-on-year. Due to a heavy financial burden,
the associate company still incurred a loss of Rmb53.91 million during the
Period, although the loss was gradually narrowing.

JoinHands Technology Co., Ltd. (a 27.582% owned associate of the Company)
generated its income primarily from its printing operations and property
leasing during the Period. Due to a lack of improvement in its operations, the
associate company incurred a loss of Rmb2.46 million during the Period.

FINANCIAL ANALYSIS

Liquidity and Financial Resources

As at September 30, 2010, current assets held by the Group amounted to
Rmb15,979.60 million in aggregate (December 31, 2009: Rmb17,903.78 million), of
which bank balances and cash accounted for 33.9% (December 31, 2009: 29.5%),
bank balances held on behalf of customers accounted for 56.1% (December 31,
2009: 64.4%) and held-for-trading investments accounted for 4.0% (December 31,
2009: 2.9%). Current ratio (current assets over current liabilities) as at
September 30, 2010 was 1.4 (December 31, 2009: 1.3). Excluding the effect of
customer deposits arising from the securities business, the current ratio of
the Group (current assets less bank balances held on behalf of customers over
current liabilities less accounts payable to customers arising from securities
dealing business) was 2.9 (December 31, 2009: 2.6).

During the Period, net cash inflow generated from the Group's operating
activities, amounted to Rmb1,706.43 million.

Borrowings and Solvency

As at September 30, 2010, total liabilities of the Group amounted to
Rmb12,728.87 million (December 31, 2009: Rmb15,337.93 million), of which 70.2%
was accounts payable to customers arising from securities dealing business and
13.3% was borrowings.

Total interest expense for the Period amounted to Rmb69.32 million, while
profit before interest and tax amounted to Rmb2,249.81 million. The interest
cover ratio (profit before interest and tax over interest expenses) stood at
32.5 (September 30, 2009: 41.2).

The asset-liability ratio (total liabilities over total assets) was 42.4% as at
September 30, 2010 (December 31, 2009: 47.3%). Excluding the effect of customer
deposits arising from the securities business, the asset-liability ratio (total
liabilities less accounts payable to customers arising from securities dealing
business over total assets less bank balances held on behalf of customers) of
the Group was 18.0% (December 31, 2009: 18.4%).

Capital Structure

As at September 30, 2010, the Group had Rmb17,287.62 million total equity,
Rmb10,240.83 million fixed-rate liabilities, Rmb386.33 million floating-rate
liabilities and Rmb2,101.70 million interest-free liabilities, representing
57.6%, 34.1%, 1.3% and 7.0% of the Group's total capital, respectively. The
gearing ratio (calculated by dividing the total liabilities less accounts
payable to customers arising from securities dealing business by total equity),
was 21.9% as at September 30, 2010 (December 31, 2009: 22.5%).

OUTLOOK

Although China's economy has slowed down moderately for two consecutive
quarters, the economy is still developing in the direction as anticipated by
the macro-control policies and is currently in a state of further consolidation
for better development. Meanwhile, the decline in growth of Zhejiang Province's
economy has also slowed gradually, but as export growth and industrial growth
are still expected to decelerate, economic growth for the fourth quarter will
also slow steadily.

As the macro-economy is still maintaining a steady and healthy development
momentum and sales of vehicles in the province look set to rise further,
traffic volumes on the Group's expressways are expected to see favorable
organic growth. The implementation of the toll-by-weight policy will keep
bringing growth to the toll revenues of the Group's two expressways. It is,
however, anticipated that traffic diversions brought about by the opening of
the Zhuyong Expressway will continue to have a certain degree of negative
impact on the Company.

Although China's stock market is still on the rebounding track after shake-ups,
the rate hike policy implemented by the State in late October to curb inflation
points to a re-tightening of the appropriately relaxed monetary policy. In
respect of Zheshang Securities, despite a decline in its brokerage business due
to lowered commission rates, better income is expected to be brought forth as
Zheshang Securities further expands its capital base and develops its
businesses in respect of investment banking, asset management and capital
appreciation management in a favorable manner.

Faced with the current external economic environment which allows no room for
complacency, the Group will work hard under the leadership of the management
and the joint efforts of all staff of the Company. Through accelerating the
pace of acquisition of new projects where suitable opportunities arise and
continuing to seek timely asset injections into the Company by the parent
company, the Group will strive to further enhance its asset return and to
create satisfactory results for the shareholders.

                                                By order of the Board          
                                                     Chen Jisong               
                                                      Chairman                 

Hangzhou, the PRC, November 19, 2010

As at the date of this announcement, the executive directors of the Company
are: Messrs. Chen Jisong, Zhan Xiaozhang, Jiang Wenyao, Zhang Jingzhong and
Ding Huikang; the non-executive director is Ms. Zhang Luyun; and the
independent non-executive directors are: Messrs. Tung Chee Chen, Zhang Junsheng
and Zhang Liping.