On 5 May 2008 Phenix Optical Holding Stock Co. Ltd, the company’s largest shareholder, initiated procedures with the China Securities Regulatory and Clearing Co. Ltd, Shanghai branch to release 12 million restricted shares of the company previously pledged to Bank of China, Shangrao City Fenghuang branch. The original pledge term for the 12 million shares was from 24 May 2007 to 23 May 2008.

As of the date of this announcement, Phenix Optical Holding Stock had pledged 28 million restricted shares of the company, accounting for 11.79% of the company’s total issued shares.

Board of Directors
7 May 2008


Source: Shanghai Stock Exchange

Date: 8 May 2008

CN01/LZ/KM/GB