Fibocom Wireless Inc. — M&A Activity 2007

Aug 13, 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.

==> picture [329 x 116] intentionally omitted <==

----- Start of picture text -----


----- End of picture text -----*

(Incorporated in Bermuda with limited liability)

(Stock Code: 346)

TERMINATION OF A VERY SUBSTANTIAL ACQUISITION

The Purchaser, a wholly-owned subsidiary of the Company, entered into the Termination Agreement to terminate the proposed acquisition of 60% equity interest in Zhuhai Zhonghuan Petroleum Limited.

Reference is made to the announcement issued by the Company dated 26 June 2007 in relation to the acquisition of 60% equity interest in Zhuhai Zhonghuan Petroleum Limited (the “Announcement”). Terms defined in the Announcement shall have the same meanings when used herein unless the context requires otherwise.

As set out in the Announcement, Completion is conditional upon, among other matters, the satisfactory results of the due diligence on the Acquired Group (the “Condition”). As the Company was not satisfied with the due diligence results and it had no intention to waive the Condition, the Purchaser and the Vendor entered into the termination agreement (the “Termination Agreement”) on 13 August 2007 to terminate the Agreement.

Pursuant to the Termination Agreement, the Vendor has to repay the whole amount of the deposit of HK$6.0 million to the Purchaser within fifteen days from the date of the Termination Agreement. The Agreement shall be terminated after the receipt of the deposit by the Company and both parties shall be released and discharged from their respective obligations under the Agreement since then.

The Board considers that the termination of the Agreement has no material adverse impacts on the existing business of the Group.

By Order of the Board Sino Union Petroleum & Chemical International Limited Chui Say Hoe Executive Director

Hong Kong, 13 August 2007

As at the date of this announcement, the Board comprises six executive Directors, namely Dr. Wang Tao, Dr. Hui Chi Ming, Dr. Chui Say Hoe, Mr. Tsang Kwok Man, Mr. Cheung Shing and Mr. Cui Yeng Xu; one non-executive Director, namely Mr. Chow Charn Ki Kenneth; and three independent non-executive Directors, namely Mr. Chan Wai Dune, Dr. Yu Sun Say and Mr. Ng Wing Ka.

* For identification purpose only