Response to Unusual Share Price Movement

The recent drop in the closing price of the company's stock over three consecutive trading sessions on 21, 24 and 25 Nov 2008 represents a deviation of 20%, thus constituting an unusual price movement.

On 18 Nov 2008, the company announced the resolutions of the 14th Extraordinary Meeting of the fourth Board of Directors and the trading of its restricted shares issued via a private placement. Following consultation with its senior management team, the company is operating normally and there are no significant undisclosed information outstanding.

The board of directors confirms that other than the aforementioned issues, there are no significant undisclosed issues or 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 stock price or the prices of its derivatives.

The China Securities Journal, the Shanghai Securities News, the Securities Times and the Shanghai Stock Exchange website (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
26 Nov 2008


Source: Shanghai Stock Exchange

Date: 26 Nov 2008

CN01/SS/MR/VW/JW