An article issued by certain media on 27 Oct 2008 said that Jiangsu Phoenix Group Media Group will acquire the company via a private placement at the price of RMB 7.00 per share. The two companies have entered into a series of framework agreements on asset restructuring signed two weeks ago.

To clarify:
Following consultation with the company's controlling shareholder, China Yaohua Glass Co., Ltd., the board of directors confirms that as of the date of this announcement, the company has not reached any agreement or showed any intention to implement asset acquisition and restructuring with Phoenix Group or other parties. In addition, it is confirmed that there are no significant undisclosed issues, plans, negotiations, intentions or agreements outstanding nor are any such issues planned for the next two weeks, pursuant to relevant regulations. Moreover, there is no remaining undisclosed information that would materially impact the company's stock price or the prices of its derivatives.

The China Securities Journal, the Shanghai Securities News and the website of the Shanghai Stock Exchange (www.sse.com.cn) are the company's designated media for information disclosure.

Board of Directors
28 Oct 2008


Source: Shanghai Stock Exchange

Date: 28 Oct 2008

CN01/CJ/JL/NK/KM