Crypto Flow Technology Limited — Major Shareholding Notification 2007

Dec 19, 2007

This announcement is made at the request of The Stock Exchange of Hong Kong Limited. 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.

==> picture [139 x 37] intentionally omitted <==

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

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 8198)

ANNOUNCEMENT

The Board has noted the increase in the trading volume and price of the Shares on 19 December 2007 and wish to state that save for (i) the disposal of 5,000,000 Shares on the market by Mr. Chan and (ii) the acquisition of 5,000,000 Shares on the market by Enso, both on 19 December 2007, it is not aware of any reason for such increase. Immediately after the Disposal, the shareholding of Mr. Chan will drop from approximately 18.41% to 17.25%. Based on the information provided by Mr. Chan and if Enso has fully acquired the said 5,000,000 Shares beneficially, immediately after the Acquisition, the shareholding of Enso will increase from approximately 7.71% to 8.87%.

The board (the “ Board ”) of directors (the “ Director ”) of Wafer System Limited (the “ Company ”) has noted the increase in the trading volume and price of the shares of the Company (the “Shares” ) on 19 December 2007 and wish to state that it is not aware of any reason for such increase save for the following:

The Board has been notified by Mr. Chan Sek Keung, Ringo (“ Mr. Chan ”) , the chairman, executive director and a substantial shareholder of the Company, that (i) he has disposed (the “ Disposal ”) of 5,000,000 Shares (representing approximately 1.16% of the total issued share capital of the Company) on the market at HK$2.325 per Share on 19 December 2007; and (ii) Enso Capital Management LLC (“ Enso ”), a substantial shareholder of the Company, that it has acquired (the “ Acquisition ”) 5,000,000 Shares (representing approximately 1.16% of the total issued share capital of the Company) on the market at HK$2.325 on 19 December 2007.

Immediately before the Disposal and according to the record of the Company, Mr. Chan beneficially held 79,560,000 Shares, representing approximately 18.41% of the total issued share capital of the Company, in addition to the 4,200,000 un-exercised share options in the Company. Immediately after the Disposal, Mr. Chan was interested in 74,560,000 Shares representing approximately 17.25% of the total issued share capital of the Company, in addition to the 4,200,000 un-exercised share options in the Company.

Immediately before the Acquisition and according to the record of the Company, Enso was interested in 33,340,000 Shares representing approximately 7.71% of the total issued share capital of the Company. Based on the information provided by Mr. Chan and if Enso has fully acquired the said 5,000,000 Shares beneficially, immediately after the Acquisition, Enso was interested in 38,340,000 Shares representing approximately 8.87% of the total issued share capital of the Company.

1

Save as disclosed above, the Board is not aware of any negotiations or agreements relating to intended acquisitions or realisations which are discloseable under Chapter 19 to 20 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 ”) or any matter discloseable under the general obligation imposed by rule 17.10 of the GEM Listing Rules which is or may be of a price-sensitive nature.

This announcement is made by the order of the Board who individually and jointly accept responsibility for the accuracy of this announcement.

By Order of the Board Wafer Systems Limited Pang Kin Man, Edmond Company Secretary

Hong Kong, 19 December 2007

As at the date of this announcement, the Board consists of one executive director, namely Mr. CHAN Sek Keung, Ringo, and three independent non-executive directors, namely Mr. PANG Hing Chung, Alfred, Mr. David TSOI and Mr. SO Lie Mo, Raymond.

This announcement, for which the directors, including all independent non-executive directors, collectively and individually accept full responsibility, includes particulars given in compliance with the GEM Listing Rules for the purpose of giving information with regard to the Company. The directors, 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 and the Company’s website at www.wafersystems.com.

• For identification purpose only

2