541 Mln Share Placement Seeks to Drive Growth

At the 3rd 2008 Extraordinary General Meeting of Shareholders, a revised private placement plan was examined and approved with strong support, reflecting shareholder optimism regarding the prospects for the LCD module project.

According to the revised plan, between 200 and 541.23 mln shares are to be placed, with a minimum issue price of RMB 2.58 per share, equal to a maximum total of RMB 1.4 bln. The raised funds will mainly be used for the development of LCD module manufacturing projects. Compared with the previous plan, the total raised funds have been reduced by RMB 300 mln, which had originally been earmarked for a registered capital boost of TCL Industries Holding (HK) Ltd., a wholly-owned subsidiary. Pursuant to the July 2007 capital boost of TCL Multimedia Technology Holdings Ltd., it is presently experiencing stable growth. Chairman Li Dongsheng plans to subscribe to 18% of the private placement at the pre-determined price outlined in the revised plan.

The LCD module projects were launched in April 2008, with construction scheduled for completion by 23 Sept 2008, following which equipment installation is to commence in November. According to estimates, after the LCD module production lines are put into operation, they will meet the company's objectives in addition to satisfying Chinese, European and North American demand.


Source: Securities Times

Date: 14 Oct 2008

CN01/NW/DM/BT/MM