Up to 80 Mln Shares to be Issued

At the 24th Meeting of the 3rd Board of Directors, held on 13 Oct 2008, the following proposals were examined and approved:

1. to place 40 to 80 mln A-shares with 10 domestic investors at a price of RMB 6.82 per share
2. a feasibility study on the use of funds raised from the private placement
3. a statement on the use of funds raised from a rights offering issuance in 2001

The aforementioned proposals must be submitted to a general meeting of shareholders for further examination and consideration for approval. The convening time for the meeting will be disclosed later.

Board of Directors
14 Oct 2008


Source: Shanghai Stock Exchange

Date: 14 Oct 2008

CN01/RP/JL/BT/KM