SHARE SUBSCRIPTION

On 11 June 2007, the Company entered into the Share Subscription Agreement with the Share Subscribers.

Pursuant to the Share Subscription Agreement, the Share Subscribers agreed to subscribe for and the

Company agreed to allot and issue in aggregate of 85,000,000 Subscription Shares for cash consideration

at a subscription price of HK$0.157 per Subscription Share.

The 85,000,000 Subscription Shares represent (i) about 5.48% of the existing issued share capital as at the

date of this announcement and ii) about 5.20% of the issued share capital as enlarged by the Share

Subscription.

The Subscription Price of HK$0.157 per Subscription Share represents (i) a discount of about 19.49% to

the closing price of HK$0.195 per Share as quoted on the Stock Exchange on the Last Trading Day; (ii) a

discount of about 18.57% to the average closing price per Share of about HK$0.1928 as quoted on the

Stock Exchange for the last five trading days prior to the Subscription Agreement; and (iii) a discount of

about 15.50% to the average closing price per Share of HK$0.1858 as quoted on the Stock Exchange for

the last ten trading days prior to the Subscription Agreement.

The Share Subscription is conditional upon, among other things, the Listing Committee of the Stock

Exchange granting the listing of, and permission to deal in the Subscription Shares.

The net proceeds in aggregate of HK$13.1 million from the Share Subscription are intended to be used for

general working capital.

RESUMPTION OF TRADING

At the request of the Company, trading in the Shares on the Stock Exchange has been suspended from 9:30

a.m. on 11 June 2007 pending the release of this announcement. Application has been made to the Stock

Exchange for the resumption of trading in the Shares on the Stock Exchange from 9:30 a.m. on 12 June

2007.