On 20 Oct 2008, the Shanghai Securities News reported that the company was considering the purchase of a 50% stake in ING Capital Life Insurance Co., Ltd. from Beijing Capital Group Co., Ltd. (Capital Group), and that the transaction price had been fixed. In response to the report, the company hereby makes the following clarifications:

1. In accordance with its development strategy and related policies, the company plans to make its initial entry into the insurance business in a timely manner.

2. The company is negotiating with Capital Group on the equity transfer. However, to date, no specific scheme has been formulated between the two parties.

Relevant information regarding progress in the equity transfer will be disclosed in a timely manner as it becomes available.

Board of Directors
21 Oct 2008


Source: Shanghai Stock Exchange

Date: 21 Oct 2008

CN01/NS/MR/JE/MM