This announcement is made pursuant to Rule 17.10 of the GEM Listing Rules. The Board announced that on 19 June 2008, the Company and Rich Summit, a wholly owned subsidiary of the Company, entered into the Acquisition Agreement I with an independent third party (“the 1st Vendor”) conditionally to acquire the entire issued share capital in certain companies from the 1st Vendor. The consideration will be settled partly in cash and partly by issue of convertible notes. On the same date, the Company and Merit Power, a wholly owned subsidiary of the Company, entered into the Acquisition Agreement II with another independent third party (“the 2nd Vendor”) conditionally to acquire the entire issued share capital in other companies from the 2nd Vendor. The consideration will be settled partly in cash and partly by issue of convertible notes. Trading in the shares of the Company on the Stock Exchange has been suspended with effect from 9:30 a.m. on 19 June 2008 pending the release of the Announcement and will remain suspended until further notice.
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