The recent increase in the closing price of the company’s stock over three consecutive trading sessions on 15, 16 and 17 Oct 2008 represents a deviation of 20%, thus constituting an unusual price movement.

Following consultation and self-inspection, the company's controlling shareholder and its effective controller confirm that there are no significant undisclosed issues currently outstanding nor are any such issues planned for the next three months, including equity transfer, private placement, debt restructuring, asset stripping or capital injection. The company is operating normally.

The board of directors confirms that there are no significant undisclosed issues, negotiations, plans, intents or agreements outstanding.

The China Securities Journal, the Shanghai Securities News, the Securities Times and the website of the Shanghai Stock Exchange (www.sse.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
20 Oct 2008


Source: Shanghai Stock Exchange

Date: 21 Oct 2008

CN01/ZZ/SW/JE/KM