The stock price of the company reached its maximum intraday limit in three consecutive trading sessions on 26, 29, and 30 Dec 2008, of which the increase represents a deviation of 15%, thus constituting an unusual price movement.

After verification with the company effective controller, China Electronics Corporation (CEC) and controlling shareholder, Amoi Electronics Co., Ltd., it was revealed that the company is facing financial problem, and is looking for solution, however there is no solution at this point of time. Apart from this, there are no significant undisclosed issues for the next two weeks.

The board of directors confirms that, there are no significant undisclosed issues, nor plans, negotiations, intentions or agreements to relevant regulations that materially impact the company's stock price or the prices of its derivatives.

The China Securities Journal, the Shanghai Securities News 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
31 Dec 2008


Source: Shanghai Stock Exchange

Date: 31 Dec 2008

CN01/VW/YS