Genesis Scale Holdings Limited — M&A Activity 2000

Feb 3, 2000

Listed Company Information

CLIMAX INT'L<0439> - Announcement CLIMAX INTERNATIONAL COMPANY LIMITED ANNOUNCEMENT STATUS OF LETTER OF INTENT The provisions of the Letter of Intent dated 15th November, 1999 between Climax International Company Limited and First Century Holdings Limited have terminated. Reference is made to the Company's announcements dated 19th and 25th November, 1999 respectively in relation to the non-legally binding letter of intent dated 15th November, 1999 (the "Letter of Intent") entered into between Climax International Company Limited (the "Company") and First Century Holdings Limited (the "Investor"). The board of directors of the Company (the "Board") wishes to announce that although the Letter of Intent envisaged that a formal investment agreement would be entered into on or before 31st January, 2000, no such agreement was entered into between the Company and the Investor by 31st January, 2000. As a result, the provisions of the Letter of Intent have terminated. The earnest money in the amount of HK$4 million (which was paid by the Investor to a firm of solicitors appointed by the Company pursuant to the terms of the Letter of Intent) will be returned to the Investor as soon as possible. The Board, however, wishes to state that although it is not currently in discussions with any other investors, discussions with the Investor with regard to a potential investment in the Company have not ceased and are continuing (notwithstanding the termination of the Letter of Intent). The Board also wishes to caution its shareholders and other investors that there is no assurance that any transaction will result from these discussions and accordingly, shareholders and other investors are advised to exercise caution when dealing in the shares of the Company. The Company will make further announcements and when appropriate to advise the public of further developments. By Order of the Board Climax International Company Limited Fung Kin Keung, Derek Director Hong Kong, 2nd February, 2000 The directors of Climax International Company Limited jointly and severally accept full responsibility for the accuracy of the information contained in this announcement and confirm, having made all reasonable inquiries, that to the best of their knowledge and belief, opinions expressed in this announcement have been arrived at after due and careful consideration and there are no other facts not contained in this announcement, the omission of which would make any statement in this announcement misleading.