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

Jan 20, 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)

INDEPENDENT NON-EXECUTIVE DIRECTOR

The Company announces that, as from 23 January 2006, the number of its independent non-executive directors will fall below the minimum number of three as required by the Listing Rules.

At the request of the Company, trading in 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 a further announcement in relation to, amongst others, the financial, production and trading position of the Group, trading in H shares of the Company will remain suspended until further notice.

Reference is made to the announcements dated 8 July 2005 and 12 August 2005 of Guangdong Kelon Electrical Holdings Company Limited (the “Company”) in relation to the resignation of Mr. Chan Pei Cheong, Andy (“Mr. Chan”), as an independent non-executive director of the Company.

The Company announces that the resignation of Mr. Chan as an independent non-executive director of the Company will formally take effect as from 23 January 2006. As such, the Company will only have two independent non-executive directors as from 23 January 2006. Rule 3.10(1) of the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited (the “Listing Rules”) requires that every board of directors of a listed issuer must include at least three independent non-executive directors. The Company is in the process of locating a replacement independent non-executive director with the suitable experience and qualifications to be considered and approved by the shareholders of the Company in accordance with the articles of association of the Company. Upon his resignation, Mr. Chan will also cease to be a member of the Audit Committee and the Remuneration and Evaluation Committee of the Company.

Pursuant to Rule 3.11 and Rule 3.23 of the Listing Rules, the Company is required to appoint an independent non-executive director and a member of the Audit Committee within three months of the effective date of the resignation of Mr. Chan. Once a replacement independent non-executive director is found, the Company will make an appropriate announcement as required by the Listing Rules.

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At the request of the Company, trading in 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 a further announcement in relation to, amongst others, the financial, production and trading position of the Group, trading in 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. Chan Pei Cheong, Andy, Mr. Li Kung Man and Mr. Xu Xiao Lu.

As disclosed in the Company’s previous announcements, Mr. Gu, Mr. Yan 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, Mr. Yan and Mr. Zhang Hong do not accept responsibility for the contents of this announcement.

Foshan City, Guangdong, the PRC, 19 January, 2006

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

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