China Resources Announces Corporate Restructuring - Company Expects To Report Year-end Results April 1 -

Business Wire, March 17, 1997

HONG KONG--(BUSINESS WIRE)--March 17, 1997--China Resources Development, Inc. (Nasdaq: CHRB), a leading natural rubber and agricultural products distributor based in the People's Republic of China (PRC), today announced the completion of a corporate restructuring at its 56%-owned subsidiary, Hainan Agricultural Resources Company Limited (HARC), designed to streamline its existing management structure, reduce overhead through the elimination of duplicative functions, improve overall operating efficiency and ultimately enhance profitability. -0-

The Company expects that this restructuring plan will:

-- Reduce selling and administrative expenses as redundant

positions are cut; -- Improve corporate liquidity as non-core assets are sold,

allowing management to focus its efforts on boosting

profitability of its core businesses and exploring complementary

alliances and acquisitions; -- Simplify HARC's management structure through its

consolidation into a few trading divisions.

The Company expects that initial benefits from the restructuring will be reflected in its 1996 fourth quarter results, which are scheduled to be reported on April 1, 1997. Because of the complex auditing process that the Company's auditors (Ernst and Young - Hong Kong) undertake, which includes the conversion of the entire year's financial results from Chinese accounting standards to U.S. GAAP (Generally Accepted Accounting Principles), in addition to the filing of a comprehensive 10-K with the Securities and

Exchange Commission (SEC), China Resources expects that the entire legally-allotted time for reporting its results will be required.

China Resources Development management also announced that it will conduct a conference call to discuss its fourth quarter and year-end results with shareholders, analysts and investment managers following the release of its results on April 1.

Except for the historical information in this press release, it includes forward-looking statements that involve risks and uncertainties, including, but not limited to the impact of weather, competitive pressures from within the natural rubber industry, quarterly fluctuations in results, the management of growth, market dynamics and other risks detailed from time to time in the Company's Securities and Exchange Commission filings. Actual results may differ materially from management expectations.

China Resources Development, Inc., with offices in Hong Kong and the Hainan Province in the PRC, through a subsidiary, owns a 56% interest in Hainan Agricultural Resources Co. Ltd. (HARC). HARC markets and distributes dry, natural rubber, liquid latex and other agricultural products, and procures production materials and supplies for major customers. The Hainan Province supplies over 60% of the PRC's natural rubber production.

CONTACT: China Resources Development, Inc.

Edward Wong

Financial Controller

011/852/28107205 or fc@chrb.com

or

Joseph N. Jaffoni, Robert L. Rinderman

Jaffoni & Collins Incorporated

212/505-3015 or jci ir@aol.com