Min Intraday Limit Reached

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

Following consultation, Tianjin Global Magcard Group Co., Ltd., the company's controlling shareholder, confirms that there are no significant undisclosed issues outstanding, including equity transfers, private placements, debt restructuring, business restructuring, asset stripping or capital injection.

The board of directors confirms that, to date, other than the ongoing negotiation with creditor banks on debt restructuring, there are no significant undisclosed issues, negotiations, plans, intents or agreements outstanding that would impact the company's stock price.

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. Investors are advised to exercise caution when dealing in the company's shares.

Board of Directors
29 Oct 2008


Source: Shanghai Stock Exchange

Date: 30 Oct 2008

CN01/MZ/VW/LZ/NK/KM