The company's stock price reached its minimum intraday limit in three consecutive sessions on 27, 28 and 29 Oct 2008, thus constituting an unusual price movement.

Because certain debts of the company are in arrears, related creditors filed lawsuits against the company for priority repayment. The company lost the case, thus its assets may be sold via auction. Consequently, the company's operation ability will be materially impacted. Currently, the company is actively implementing asset and debt restructuring.

The board of directors and senior management of the company both confirm that, except the above-mentioned issues, there are no significant issues outstanding that would materially impact the company's stock price. Following consultation, the company's largest shareholder also confirms that there are no undisclosed significant issues outstanding so far, nor are there any foreseeable within the next two weeks that require disclosure.

The China Securities Journal, the Shanghai Securities News and the website of the Shanghai Sock Exchange (www.sse.com.cn) are the company's designated media for information disclosure. Investors are advised to exercise caution when dealing in the company's shares.

Board of Directors
30 Oct 2008


Source: Shanghai Stock Exchange

Date: 30 Oct 2008

CN01/CJ/JL/NK/KM