On 23 Jun 2008, the company announced that it will sell a 96% stake in Shanghai Tomorrow Beipu Sci & Tech Development Co. Ltd to Beijing Dongxue Xinlian Investment Co. Ltd for RMB 58.54 mln.

Shanghai Tomorrow Beipu Sci & Tech Development Co. Ltd was previously a major contributor to the company's bottom line. Under increasingly intense competitive pressure in the IT sector, Shanghai Tomorrow Beipu Sci & Tech Development Co. Ltd is faced with shrinking business. Its profitability has been declining drastically and the company may suffer losses.

As of 31 Dec 2007, the total asset value of Shanghai Tomorrow Beipu Sci & Tech Development Co. Ltd was RMB 68.53 mln, with net assets valued at RMB 64.21 mln and a net profit (loss) of RMB (2.04) mln.

Source: China Securities Journal

Date: 23 Jun 2008

CN01/MZ/BT/MM