Medlive Technology Co., Ltd. — Capital/Financing Update 2007

Mar 27, 2007

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 ON THE IMPLEMENTATION OF THE AMENDED SHARE REFORM PROPOSAL

This announcement is made in accordance with Rule 13.09(2) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

Upon the authorization and acting on behalf of the Holders of Non-freely Transferable Shares, the Board hereby announces the expected timetable in relation to the implementation of the Amended Share Reform Proposal.

Reference is made to the announcements (the “Announcements”) of Guangdong Kelon Electrical Holdings Company Limited (the “Company”) dated 19 December 2006 and 28 December 2006. Terms used in this announcement shall have the same meanings as defined in the Announcements unless otherwise defined herein.

Upon the authorization and acting on behalf of the Holders of Non-freely Transferable Shares of the Company, the Board hereby announces the expected timetable in relation to the implementation of the Amended Share Reform Proposal as follows:

• 28 March 2007 Record date for ascertaining entitlement to receive the shares as consideration offered by Hisense Air-Conditioning to the holders of A Shares under the implementation of the Amended Share Reform Proposal.

• 29 March 2007 Trading in the A Shares resumes on the Shenzhen Stock Exchange. The share price on this date will not include the ex-right reference price and there will be no limit as to price increase/decrease range; and

The stock abbreviation for the A Shares will be changed to “*ST Kelon” with effect from the same date and the stock code for A Shares will remain unchanged as 000921.

Details of the implementation of the Amended Share Reform Proposal are available at http:// www.cinifo.com.cn.

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Suspension of 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 until further notice.

By order of the Board of Guangdong Kelon Electrical Holdings Company Limited Tang Ye Guo Chairman

As at the date of this announcement, the Company’s executive directors are Mr. Tang Ye Guo, Ms. Yu Shu Min, Mr. Yang Yun Duo, Mr. Wang Shi Lei, Mr. Lin Lan and Mr. Xiao Jian Lin; and the Company’s independent non-executive directors are Mr. Zhang Sheng Ping, Mr. Lu Qing and Mr. Cheung Yui Kai, Warren.

Foshan City, Guangdong, the PRC, 26 March 2007

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

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