In order to establish a long-term measures against the possible misappropriation of funds by the controlling shareholder and related parties, the company has formulated management rules for the possible misappropriation of funds by the controlling shareholder and related parties, in compliance with the Company Law of the PRC, the Circular on Funds Transfer between Listed Companies and Related Parties and on Guarantees Provided by Listed Companies for Other Parties, the Notice to Accelerate Repayment for Debts, the Notice to Clear Funds of Listed Companies Misappropriated by the Controlling Shareholder and the Articles of Association of the company.

Source: Securities Times

Date: 18 Aug 2008

CN01/IS/LZ/BT/KM