The Exchange has today, pursuant to Listing Rule 704(12), directed the Company to appoint a Special Auditor immediately to investigate the affairs of the Company. The Special Auditor is to report to the Company's Audit Committee and the Exchange.

On 12 February 2010, the Company announced that it was in default on its Convertible Bonds as it was unable to meet repayment obligations amounting to US$170.56 million. The Company had earlier attributed the delay in repayment to the process of obtaining SAFE approval for the remittance of funds out of the PRC. The Company characterised the process as administrative and procedural in nature.

The Exchange directed the Company to conduct a cash audit to obtain greater transparency with regard to the Company's circumstances in consideration of the possible implications for the Company's ability to continue as a going concern. The Company was directed to announce the findings by 15 March 2010. The Company has failed to do so despite repeated reminders. The Company has also not presented its interim financial statements for the quarter ended 31 December 2009, despite a 7-week extension of time which expires today.

In view of the Company's failure to provide timely and satisfactory responses to the Exchange's requests for information and the continued uncertainty surrounding its state of affairs, the Exchange directs the Company to appoint a Special Auditor to investigate its affairs.

The Company has agreed to cooperate fully with the Special Auditor to be appointed.