Proposal Added to 4th 2008 EGM

On 27 Oct 2008, the company received a letter from Hubei Xiantao Woolen Group Co., Ltd., a major shareholder with a 29.9% stake in the company, requesting the company to add an interim proposal to repay debts with accounts receivable at a discount to the agenda of the 4th 2008 Extraordinary General Meeting of Shareholders.

The board of directors has approved the submission of the interim proposal for further evaluation at the EGM held on 6 Nov 2008. Other issues related to the general meeting of shareholders will remain unchanged.

Board of Directors
27 Oct 2008


Source: Securities Times

Date: 28 Oct 2008

CN01/IS/LZ/NK/KM