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The MOU is valid for a period of six (6) months from the date of the MOU or such later date(s) as the parties may agree upon in writing (“Negotiation Period”), and will continue throughout the Negotiation Period unless terminated pursuant to the provisions of the MOU or upon the entry by the parties into a share sale agreement. During the Negotiation Period, the parties shall negotiate with each other for the entry into a share sale agreement for the Proposed Acquisition (“SSA”).

As at the date of this announcement, the legal due diligence work and assets valuation exercise are still in progress. Further, the respective parties have also commenced preliminary negotiations on the terms of the SSA.

A more detailed announcement will be released upon the signing of the SSA.

This announcement is dated 27 June 2006.