At the 4th 2008 Special Meeting of the 3rd Board of Directors held on 27 May 2008, the following proposals were examined and approved:

1. to apply for a line of credit of up to RMB 200 mln from Industrial & Commercial Bank of China Limited, Beijing Doncheng sub-branch, with an interest rate which is 8% lower than that of bank loans in the same period
2. to guarantee a one-year loan of up to RMB 108 mln from China Minsheng Banking Corp. Ltd, Deshengmen sub-branch, for Anqing Capital Water Co. Ltd, a wholly-owned subsidiary of the company, with an interest rate 10% higher than the benchmark rate made public by the People's Bank of China

Anqing Capital Water Co. Ltd will provide a counter-guarantee with its thirty-year sewage treatment operations rights.

Board of Directors
27 May 2008


Source: Shanghai Stock Exchange

Date: 28 May 2008

CN01/LZ/MM/KM