Medlive Technology Co., Ltd. — Board/Management Information 2006

Jun 21, 2006

GUANGDONG KELON ELECTRICAL HOLDINGS COMPANY LIMITED 廣東科龍電器股份有限公司

(A joint stock limited company incorporated in the People’s Republic of China with limited liability) (Stock Code: 0921)

ANNOUNCEMENT AMENDMENT TO INFORMATION ON PROPOSED CANDIDATES FOR THE BOARD OF DIRECTORS

Guangdong Kelon Electrical Holdings Company Limited (the “Company”) published a notice (the “Notice of EGM”) in “Securities Times” and “China Securities Journal” in the People’s Republic of China, and “Hong Kong Commercial Daily” and “China Daily” in Hong Kong on 10 May 2006 in relation to the extraordinary general meeting of the Company to be held on 26 June 2006. On 16 May 2006, the Company published an announcement (the “Clarification Announcement”) to clarify certain information relating to the details of the candidates nominated to be the directors of the Company as disclosed in the Notice of EGM. The Notice of EGM and the Clarification Announcement contained information on the proposed candidates for the board of directors of the Company and confirmed therein that “there was no other information to be disclosed under Rule 13.51(2) and be brought to the attention of the shareholders of the Company” (the “Confirmations”).

Since the Company has failed to publish its annual report for the year ended 31 December 2005 (the “Annual Report”) and its quarterly report for the three months ended 31 March 2006 (the “First Quarterly Report”) within the prescribed periods, which is in breach of the Rules Governing Listing of Stocks on Shenzhen Stock Exchange (as revised on May 2006), the Shenzhen Stock Exchange thereby publicly denounced the Company, the board of directors, the supervisory committee and the senior management of the Company on 29 May 2006.

In view of the above, the Confirmations given in the Notice of EGM and the Clarification Announcement regarding the proposed candidates for the board of directors of the Company, namely Mr. Tang Ye Guo, Mr. Xiao Jian Lin, Mr. Lin Lan and Mr. Su Yu Tao, are revised as follows:

Mr. Tang Ye Guo, Mr. Xiao Jian Lin, Mr. Lin Lan and Mr. Su Yu Tao were denounced by Shenzhen Stock Exchange on 29 May 2006. Save for the above, there are no other matters required to be disclosed under Rule 13.51(2) or be brought to the attention of the shareholders of the Company.

In addition, the declaration of independence of Mr. Lin Lan is also revised as follows:

Mr. Lin Lan has a connected relationship with the Company because he is a deputy director of the Company, but he does not hold any shares in the Company.

Trading in the A shares of the Company

As the Company is unable to publish the Annual Report and the Quarterly Report on or before 30 April 2006 as required by the relevant law and regulations in the PRC, trading in the A shares of the Company on the Shenzhen Stock Exchange was suspended from 8 May 2006 until the Annual Report and the First Quarterly Report have been published.

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If the Company is unable to publish the Annual Report and the First Quarterly Report by 30 June 2006, trading in the A shares of the Company will resume on 3 July 2006 and the procedures in relation to a warning of risk of delisting will be implemented in respect of the A shares of the Company.

Trading in the H shares of the Company

At the request of the Company, trading in the H shares of the Company was suspended with effect from 10:00 a.m. on 16 June 2005 pending the release of an announcement in relation to price sensitive information. Subject to the publication of the annual results of the Company for the financial year ended 31 December 2005 and further announcements in relation to, amongst others, the financial, production and trading position of the Group, and the satisfaction by the Stock Exchange of the adequacy of the internal control measures of the Company, trading in the H shares of the Company will remain suspended until further notice.

By order of the Board of Guangdong Kelon Electrical Holdings Company Limited Liu Cong Meng Vice Chairman

As at the date of this announcement, the Company’s executive directors are Mr. Gu Chu Jun, Mr. Liu Cong Meng, Mr. Li Zhen Hua, Mr. Yan You Song, Mr. Zhang Hong and Mr. Fang Zhi Guo; and the independent non-executive directors are Mr. Li Kung Man and Mr. Xu Xiao Lu.

As disclosed in the Company’s previous announcements, Mr. Gu Chu Jun, Mr. Yan You Song and Mr.Zhang Hong had been formally arrested by the Foshan City Police. None of them can be contacted as at the date hereof. As such, Mr. Gu Chu Jun, Mr. Yan You Song and Mr. Zhang Hong do not accept responsibility for the contents of this announcement.

Foshan City, Guangdong, the PRC, 20 June 2006

“Please also refer to the published version of this announcement in China Daily”

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