Medlive Technology Co., Ltd. — Capital/Financing Update 2002

Aug 5, 2002

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.

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)

ANNOUNCEMENT

Further to the Company’s announcements dated 27 November 2001 and 13 March 2002, the Board of the Company wishes to announce that the transfer of GKG’s interest in Kelon Advertising, Huaao Electronics and Wangao to Jia Ke (a wholly-owned subsidiary of the Company) has been completed.

Reference is made to the announcements of Guangdong Kelon Electrical Holdings Company Limited (the “Company”) dated 27 November 2001 and 13 March 2002.

On 26 November 2001, the Company’s wholly-owned subsidiary, Shunde Jia Ke Electronics Company Limited（順德市嘉科電子有限公司）(“Jia Ke”) entered into sale and purchase agreements to acquire from Guangdong Kelon (Rongsheng) Group Company Limited（廣東科龍（容聲）集團有限公司） (“GKG”) its entire interest in Shunde Kelon Advertising Company Limited（順德市科龍廣告有限 公司）(“Kelon Advertising”), Shunde Kelon Household Electrical Appliance Company Limited（順德 市科龍家電有限公司）(“Kelon HEA”), Shunde Huaao Electronics Company Limited（順德市華 傲電子有限公司）(“Huaao Electronics”) and Shunde Wangao Import and Export Company Limited （順德市萬高進出口有限公司）(“Wangao”) (collectively, the “Service Companies”) respectively. GKG was a substantial shareholder of the Company holding approximately 34.06% of the Company’s total issued share capital at that time and accordingly the acquisition of GKG’s interest in the Service Companies by Jia Ke constituted connected transactions under the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited (the “Listing Rules”).

The board of directors (the “Board”) of the Company wishes to announce that all of GKG’s interest in Kelon Advertising, Huaao Electronics and Wangao had been transferred to Jia Ke and the transfer registration procedures were completed in early August 2002. Immediately thereafter, Jia Ke owns an 80% interest in Kelon Advertising, a 70% interest in Huaao Electronics and an 80% interest in Wangao. However, the transfer of the 75% interest in Kelon HEA is still in progress and the Company will make a separate announcement once such transfer is completed.

Since GKG is no longer a connected person of the Company (as it has disposed of its entire interest in the Company by virtue of sale and purchase agreements dated 29 October 2001, 15 April 2002 and 30 April 2002 respectively), and the transfer of shares in Kelon Advertising, Huaao Electronics and Wangao have been completed, any future transactions between the Company (or its subsidiaries) and any of the Service Companies will not constitute connected transactions with GKG under the Listing Rules.

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

Shunde, Guangdong, the PRC, 5 August 2002

"Please also refer to the published version of this announcement in The Standard"

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