Controlling Shareholder Increases Stake by 1.03%

The company received a notice from China Jilin Forest Industry Group Co., Ltd., the controlling shareholder of the company, holding 142,735,000 shares of the company, equal to a 45.97% stake, stating that on 2 Sept 2008, Forest Industry Group purchased 3,198,226 shares of the company through the trading system of the Shanghai Stock Exchange, equal to a 1.03% stake, at an average price of RMB 7.72 per share. Following the acquisition, Forest Industry Group held a total of 145,933,226 shares of the company, equal to a 47% stake.

Forest Industry Group plans to continue to purchase up to 3,011,774 shares of the company, equal a 0.97% stake, at a price of up to RMB 12.39 per share, through the trading system within the next 12 months. Together with the aforementioned 3,198,226 shares, the increase in shareholding of the company will be 6,210,000 shares, equal to a 2% stake.

Forest Industry Group pledged that they would not sell shares of the company during the shareholding increase period and the statutory period.

Board of Directors
2 Sept 2008


Source: Shanghai Stock Exchange

Date: 3 Sept 2008

CN01/IS/LZ/BT/KM