The recent increase in the closing price of the company's shares over three consecutive trading sessions on 8, 9 and 10 Oct 2008 represents a deviation of 20%, thus constituting an unusual price movement.

Following consultation with the company's effective controller, Zhang Banghui and Wu Tianxing, the board of directors confirms that there are no significant undisclosed issues, negotiations, intentions or agreements outstanding, pursuant to relevant regulations, nor is there any remaining undisclosed information that would materially impact the company’s stock price. Currently, the company is operating normally.

The Securities Times, the Shanghai Securities News and the China Info website (www.cninfo.com.cn) are the company's designated media for information disclosure. Investors are advised to exercise caution when dealing in the company's shares.

Board of Directors
10 Oct 2008


Source: Securities Times

Date: 13 Oct 2008

CN01/BJ/JL/BT/KM