Deviation of 20% in Share Price

The recent decrease in the closing price of the company's shares over three consecutive trading sessions on 31 Oct, 3 Nov and 4 Nov 2008 represents a deviation of 20%, thus constituting an unusual price movement.

Following consultation, both the company and its controlling shareholder, China Potevio Co., Ltd., confirmed that there are no undisclosed information that would materially impact the company’s share price outstanding, nor are there any overall listing or major asset restructuring or acquisition planned for the next three months.

The board of directors confirmed that there are no significant undisclosed issues or any related plans, negotiations, intentions or agreements outstanding, pursuant to relevant regulations, nor is there any remaining undisclosed information that would materially impact the company’s share price or the prices of its derivatives.

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

Board of Directors
4 Nov 2008


Source: Shanghai Stock Exchange

Date: 5 Nov 2008

CN01/NW/VW/DM/NK/KM