Medlive Technology Co., Ltd. — Earnings Release 2001

Jan 29, 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)

WARNING OF ANNUAL RESULTS FOR 2001

The Board wishes to inform the shareholders of the Company and investors that the Company is expected to record a loss in its operating business for the year ended 31 December 2001.

Trading in the shares of Guangdong Kelon Electrical Holdings Company Limited (the "Company") was suspended at the request of the Company with effect from 10:00 am on 14 December 2001.

The board of directors (the "Board") of the Company wishes to inform the shareholders of the Company and investors that since the competition within the household electrical appliances industry in the People's Republic of China is fiercer than last year, the Company's trading conditions have failed to improve. As a result, the Board currently expects that a loss will be recorded in the Company's operating business for the year ended 31 December 2001.

As the Company's auditors have not yet audited the Company's financial results for the year ended 31 December 2001, the Board is not in a position to confirm the amount of the loss. The audited results as well as the specific reasons for the loss and its financial impact on the Company will be published in the Company's 2001 Annual Report. The Company will publish such audited results in accordance with the requirements under the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the Shenzhen Stock Exchange Listing Rules before 30 April 2002.

Trading in the shares of the Company remains suspended until a further announcement is made.

Shareholders of the Company and investors should exercise caution when dealing in the shares of the Company.

By Order of the Board of

Guangdong Kelon Electrical Holdings Company Limited

Gu Chu Jun

Chairman

28 January 2002

"Please also refer to the published version of this announcement in the Hong Kong i-mail"