On 31 Jul 2008, the Ministry of Finance and the State Administration of Taxation jointly issued a notice, stating that the export tax rebate for certain textiles and apparels was increased from 11% to 13%, effective 1 Aug 2008.

The aforementioned adjustment will not have a significant impact on the company's 2H 2008 financial status or on future operations.

Board of Directors
4 Aug 2008

Source: Shanghai Stock Exchange

Date: 5 Aug 2008

CN01/EJ/LZ/BT/KM