2006 Incentive Plan Implemented

At the 2005 Annual General Meeting of Shareholders, the company’s incentive plan on restricted shares for 2006, 2007 and 2008 was examined and approved. At a meeting of the board of directors held on 20 Aug 2008, a proposal to implement the 2006 incentive plan of restricted shares was examined and approved.

As the 2006 incentive plan of restricted shares has met relevant requirements, the company will distribute 61,447,370 A-shares to the company’s senior managers who are eligible for the incentive plan.

On 3 Jun 2008, 21 of the senior managers who were eligible for the incentive plan, including Wang Shi, the chairman of the board of directors, and Yu Liang, the president of the company, decided to donate RMB 10 mln of incentive shares allotted to them to victims of the earthquake-hit area in Wenchuan County, Sichuan Province on 21 May 2008.

Board of Directors
23 Aug 2008


Source: Securities Times

Date: 23 Aug 2008

CN01/CJ/JL/BT/KM