RMB 16 Mln Contribution to Establish New Company

At the 4th Meeting of the 6th Board of Directors, held on 21 Oct 2008, the following proposals were examined and approved:

1. the Working Report of the General Manager for 3Q 2008
2. the 3Q 2008 Report
3. to jointly establish a new company with Shenzhen Leaguer Venture Capital Co., Ltd., Wuxi Hulitong Investment Consulting Co., Ltd. and other as yet unconfirmed companies
The new new company is tentatively named Jiangsu Digital Information Industrial Zone Development Co., Ltd. with registered capital of RMB 80 mln, of which, RMB 16 mln will be contributed by the company in exchange for a 20% stake.
Shenzhen Leaguer, the largest shareholder of the company with 37,372,394 shares, or a 10.84% stake, has made a commitment as follows:
The cumulative earnings of the new affiliate will be no less than 40% of its registered capital within the next five years, otherwise, Shenzhen Leaguer will reimburse the company's interests. Additionally, the company can transfer its stake in the affiliate to Shenzhen Leaguer for RMB 16 mln and an 8% annual yield.

Board of Directors
22 Oct 2008


Source: Securities Times

Date: 23 Oct 2008

CN01/FL/JL/JE/KM