Crypto Flow Technology Limited — Board/Management Information 2007

Jan 30, 2007

The Stock Exchange of Hong Kong Limited takes no responsibility for the contents of this announcement, makes no representation as to its accuracy or completeness and expressly disclaims any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

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WAFER SYSTEMS LIMITED 威 發 系 統 有 限 公 司*

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 8198)

RESIGNATION OF INDEPENDENT NON-EXECUTIVE DIRECTOR AND OUTSTANDING APPOINTMENT OF INDEPENDENT NON-EXECUTIVE DIRECTOR AND AUDIT COMMITTEE MEMBER

The Board announces that Mr. Yu Zhonghou has resigned as the independent non-executive director of the Company with effect from 1 February 2007.

The board of directors (the “Board”) of Wafer Systems Limited (the “Company”) announces that Mr. Yu Zhonghou (“Mr. Yu”) has resigned as independent non-executive director of the Company for personal reasons with effect from 1 February 2007. Following the resignation, Mr. Yu has ceased to be the member of the audit committee of the Company with effect from the same day. Mr. Yu confirmed that there was no disagreement with the Board and there were no matters that need to be brought to the attention of the shareholders of the Company.

Following Mr. Yu’s resignation, the Company only has two independent non-executive directors and two members in the audit committee of the Company. As a result, the Company is not able to comply with Rules 5.05 (1) and 5.28 of the Rules Governing the Listing of Securities on the Growth Enterprise Market of The Stock Exchange of Hong Kong Limited (the “GEM Listing Rules”) which require the Company to retain at all times a minimum of three independent non-executive directors and three audit committee members. In order to comply with the relevant requirements, the Board is in the process of searching for a suitable person to be appointed the independent non-executive director and the member of the audit committee of the Company. The Company will make every effort to ensure that the position will be filled as soon as possible and within three months and will make a further announcement upon the appointment of the new independent non-executive director and the member of the audit committee of the Company.

The Board wishes to express its sincere gratitude to Mr. Yu for his valuable contribution to the Company during the tenure of his office.

By Order of the Board Wafer Systems Limited Chan Sek Keung, Ringo Chairman and Chief Executive Officer

Hong Kong, 30 January 2007

As at the date of this announcement, the Board consists of one executive Director, namely Mr. CHAN Sek Keung, Ringo, three non-executive Directors, namely Mr. Alasdair Gordon NAGLE, Ms. Clara HO and Mr. KWAN Kit Tong and three independent non-executive Directors, namely Mr. PANG Hing Chung, Alfred and Mr. David TSOI and Mr. YU Zhonghou.

This announcement, for which the directors of the Company collectively and individually accept full responsibility, includes particulars given in compliance with the Rules Governing the Listing of Securities on the Growth Enterprise Market of The Stock Exchange of Hong Kong Limited for the purpose of giving information with regard to the Company. The directors of the Company, having made all reasonable enquiries, confirm that, to the best of their knowledge and belief: (1) the information contained in this announcement is accurate and complete in all material respects and not misleading; (2) there are no other matters the omission of which would make any statement in this announcement misleading; and (3) all opinions expressed in this announcement have been arrived at after due and careful consideration and are founded on bases and assumptions that are fair and reasonable.

This announcement will remain on the “Latest Company Announcements” page of the GEM Website at www.hkgem.com for at least 7 days from the date of its publication.

• For identification purpose only