I. Origins of the Project

A. The National Stadium is the main stadium of the 29th Olympics. It is located within the Olympic Garden, spanning an area of 250,000 square meters.

B. On October 25, 2002, worldwide proposals were solicited for a "National Stadium (the main venue for the 2008 Olympics) construction plan." At the beginning of December of the same year, after an initial evaluation process, seven proposals from over 10 different countries and regions made the first cut. In March of 2003, after thorough consideration from government officials, construction experts, city planners, athletic specialists and other professionals, three proposals were still in the running for the competition to becoming the main venue for the Beijing Olympics; among the three was the "Bird's Nest" design. A month later, after a strict evaluation process and public vote, the blueprint brought forth by Swiss architecture firm Herzog de Meuron, ARUP Consulting Company, and China Architecture Design and Research Group won the design bid due to its novel style and unique structure; the first "Bird's Nest" triumph.

C. In April of 2002, legal issues regarding bid invitations were dealt with, and in October, invitations were sent worldwide requesting participation in Olympic projects. In the first two months of the following year, the evaluation committee composed of legal experts recommended seven applicants to the Beijing municipal government regarding management of the National Stadium. Five of the qualified applicants entered the second round of bidding. In April of 2003, the application documents for the ownership of the National Stadium were officially released. The two groups with the best assessments following comprehensive evaluation of the design, construction, financing, operation and delivery schemes were recommended in July to continue into the next stage of competition. In the end, following negotiations and approval by the Beijing municipal government, a consortium composed of the China International Trust and Investment Company (CITIC), the Beijing Urban Construction Group, CITIC Group affiliate Guan Elstrong from Hong Kong and the Golden State Holding Group from the United States won the bid and became the owner/manager of the National Stadium. On August 9, 2003, agreements regarding the National Stadium were officially signed. The CITIC Group, winner of the tender application for the project, signed the "Chartered Rights Agreement" with the Beijing municipal government. The new owners also signed the "Agreement on the National Stadium" with the Beijing municipal government and the Beijing Organizing Committee for the Games of the XXIX Olympiad (BOCOG), as well as the "Joint Operation Contract" with the Beijing State-Owned Assets Management Co., Ltd.

II. Companies Involved

The National Stadium Co., Ltd. is made up of the Beijing State-Owned Assets Management Co., Ltd. (BSAM), who has a 58% investment interest in the stadium, and the CITIC Group consortium, who has invested 42% in the venue. The main function of this company is to coordinate and manage the stadium's finances, construction and operation. CITIC Group was granted a 30-year chartered management right to the venue, after which management privileges will go to the government representative, BSAM.

A. BSAM is the main manager of the stadium, with a majority of shares in the facility, totaling more than 3 hundred billion yuan. The company is the city's most prominent economic force and the main driver behind the planning and management of the National Stadium and the National Aquatics Center.

B. CITIC Group is one of China's windows to the world. As a leader of innovative advancement, the company has been very attractive to foreign investors. At present, CITIC Group is composed of 44 smaller banks located in Hong Kong, the United States, Canada, Italy and many other countries. The company's main area of expertise lie in finance, industry and other service related domains. Five years after its birth, the late Chinese leader Deng Xiaoping described the company as one that is bravely blazing new trails. CITIC Group is continuing in this path by relying on its knowledge of the market to remain ahead of the game.

C. One of the top 500 companies in China, the Beijing Urban Construction Group was founded in 1983. The company has its hands in many areas of construction, including housing and roadwork. Its professional work has strengthened its reputation, giving the Beijing Urban Construction Group bright honors in related invested industries. In China, the group has been involved in construction work all over, with projects in over 20 of the provinces and cities in the country. Internationally, their expertise has trailed over to Thailand, Vietnam, Singapore, Yemen, Iran, Tunisia, Gabon, Sierra Leone, and Mongolia, among other areas of the world. 40 of the companies that fall under the umbrella of the Beijing Urban Construction Group are ISO9000 qualified, 20 have been ISO14001 qualified, and 19 are certified under OHS18000. The group has been intimately involved in construction in preparation of the Olympic Games, including work on the National Stadium, the Olympic Village, and the International Airport. Throughout many large cities in China, the company has also been the main planners for roadways and railways. Currently, the company employs over 28,000 professionals. With the upcoming Olympics, the group continues to strive for the best, hoping to make its mark deeper in China and throughout the world.

D. The Golden State Holding Group was established in 1986 in the United States. It entered as a player in the Chinese economy in 1988. With offices in America, France, Spain, Canada, and China, its work in construction, environmental protection, and renewable energy has given the company a good name in the international arena. In the 20 years since it entered the Chinese market, Golden State Holding Group has become a force in China, employing over 1,600 people in nearly 30 specialized service companies. By managing several water, sewage, and waste management plants, it has become a leader in China's environmental protection and construction industries. The company acts as a leading advisor to transnational companies operating in China, increasing cooperation within related industries. Hospitals, electric plants, water plants, roadways, telecommunications companies, etc. have all benefited from the company's expertise.