Joint Venture Agreement Signed

Pursuant to an agreement on the establishment of a contractual broadband joint venture, signed between the company, LGI China Holdings, BV (LGI) and PRCVP Beijing Broadband L.P. (PRCVP), on 31 Jul 2008, relevant agreements, including a joint venture agreement, a network use agreement, an integrated service agreement and other cooperation agreements, have been signed between Beijing Gehua Network Technology Development Co., Ltd. (BGNTD), a wholly-owned subsidiary of the company, and Netfront Information Technology Limited, which belongs to both LGI and PRCVP.

The broadband company boasts a registered capital of USD 33.4 mln, of which USD 17.03 mln will be borne by BGNTD, in return for a 51% stake.

The above-mentioned cooperation agreements are subject to the approvals of relevant government authorities.

Board of Directors
1 Aug 2008


Source: Shanghai Stock Exchange

Date: 4 Aug 2008

CN01/BJ/DM/BT/KM