In view of the fact that over six months have passed since the company announced its intention to acquire a 70% equity in Datang Yantan Hydropower Co., Ltd. from China Datang Group Corporation, in compliance with relevant regulations, the company will terminate the acquisition procedure and will not launch any major asset restructuring scheme within three months of the date of this announcement.

The company will convene board meetings to consider another major asset restructuring after three months of this announcement. It will stipulate a specific plan to effectuate Datang Group's commitment for the share reform.

Due to the fact that the company could not complete relevant procedures to acquire Datang Yantan's 70% stake within the previous three quarters, China Datang Group is working out a plan to seek relevant approval of regulatory authorities.

Board of Directors
26 Sept 2008


Source: Shanghai Stock Exchange

Date: 6 Oct 2008

CN01/TW/SW/BT/KM