On 21 Oct 2008, the company's independent financial adviser received a notification issued by the China Securities Regulatory Commission (CSRC), which was then forwarded to the company. The notification stated that on 24 Oct 2008, the Merger and Reorganization Review Committee of the CSRC will review the company's major asset swap, asset acquisition via private placement and related-party transaction.

Having misunderstood the nature of the notification, the company failed to apply for a trading suspension on 21 Oct 2008. Upon realizing its misunderstanding of the procedure, the company applied for a trading suspension on 22 Oct 2008 at 1:00 pm, pending the outcome of the examination.

Board of Directors
22 Oct 2008


Source: Shanghai Stock Exchange

Date:23 Oct 2008

CN01/CW/SW/JE/MM