As a response to the failure of Pantech Co., Ltd. to purchase the 7.5% stake in the company owned by Xikai Mobile Communications Equipment Co., Ltd., as outlined in the Put Option and Share Entrust Management Agreement, the company filed an arbitration application with the China International Economic and Trade Arbitration Commission.

Following negotiations, the company signed an equity transfer agreement with Pantech, pursuant to which Pantech fulfilled its obligations. The company therefore sought to cancel its application for arbitration, a request which has since been approved by the commission. The associated RMB 148,458 arbitration fee has been assumed by the company.

Board of Directors
23 Oct 2008


Source: Shanghai Stock Exchange

Date: 24 Oct 2008

CN01/CW/SW/JE/MM