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

May 22, 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)

RESIGNATION OF SUPERVISOR

The Company announces that, Ms. He, a supervisor of the Company, has tendered a letter to the Supervisory Committee in respect of her resignation as a supervisor of the Company for personal reasons.

The resignation of Ms. He will take effect upon the election of a new supervisor at a general meeting of the Company, the date of which will be decided by the Company as soon as practicable.

The supervisory committee (the “Supervisory Committee”) of Guangdong Kelon Electrical Holdings Company Limited (the “Company”) received a letter from Ms. He Si (“Ms. He”) on 18 May 2006, informing the Supervisory Committee of her resignation as a supervisor of the Company for personal reasons. The Supervisory Committee has accepted the resignation application of Ms. He as a supervisor of the Company and would like to express gratitude to Ms. He for her contribution to the Company during her term of office as a supervisor of the Company.

Ms. He has confirmed to the board of directors of the Company (the “Board”) that she has no disagreement with the Board in relation to resolutions which she has voted on at the meetings of the Supervisory Committee. Ms. He also wishes to draw the attention of the shareholders of the Company and The Stock Exchange of Hong Kong Limited (the “Stock Exchange”) to the fact that her votes in relation to resolutions considered at the meetings of the Supervisory Committee, during her term of office as a supervisor of the Company, were based on the audited opinions provided by the auditors engaged by the Board. In addition, Ms. He did not obtain any knowledge of the economic crimes allegedly committed by certain individuals including the former chairman of the Board, Mr. Gu Chu Jun, within the scope of her work and during the term of her office in her department, neither did she vote in relation to any matters relating to such economic crimes allegedly committed by certain individuals including Mr. Gu Chu Jun.

As the Company is unable to contact the chairman of the Supervisory Committee, Mr. Zeng Jun Hong, the resignation of Ms. He will result in the number of members of the Supervisory Committee falling below the minimum requirement pursuant to the relevant regulations of the Company Law of the People’s Republic of China (the “PRC”). Accordingly, the resignation of Ms. He will take effect upon the election of a new supervisor at a general meeting of the Company, the date of which will be decided by the Company as soon as practicable.

The labour union of the Company will nominate as soon as practicable a candidate for supervisor of the Company (the “Candidate”), who will then be proposed at a general meeting of the Company for the consideration and approval of the shareholders of the Company.

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Trading in the A Shares of the Company

As the Company is unable to despatch the annual report of the Company for the year ended 31 December 2005 (the “Annual Report”) and the quarterly report of the Company for the three months ended 31 March 2006 (the “First 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 will be suspended from 8 May 2006 until the Annual Report and the First Quarterly Report have been despatched.

If the Company is unable to despatch 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 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, 19 May 2006

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

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