In the second stage of its stock incentive plan, Shenzhen Zhenye (Group) Co. Ltd will make available 6,076,209 shares to its management, of which 4,508,547 shares will be contributed by the State-owned Assets Supervision and Administration Commission (SASAC) of the Shenzhen Municipal Government while the other 1,567,662 shares will be assumed by shareholders who formerly held restricted shares.

On 5 Feb 2008, change of ownership registration of the 4,508,547 shares contributed by SASAC was completed by China Securities Depository and Clearing Co. Ltd, Shenzhen Branch. The shares will not be tradeable or transferable for two years but may become tradeable following the lock-up period provided certain conditions imposed on the company's business performance and return on net assets are satisfied.

Source: Securities Daily

Date: 13 Feb 2008

CN01/SW/GB