Medlive Technology Co., Ltd. — M&A Activity 2008

Mar 20, 2008

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HISENSE KELON ELECTRICAL HOLDINGS COMPANY LIMITED

海信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)

FURTHER ANNOUNCEMENT ON MAJOR AND CONNECTED TRANSACTION

The Company announces that the Acquisition has been rejected by the Merger and Reorganisation Review Committee of CSRC (中國證券監督管理委員會併購重組審核委員 會) on 20 March 2008.

This announcement is made pursuant to Rules 13.09(1) and 13.09(2) of the Listing Rules.

Reference is made to the announcement and circular (“ Circular ”) of the Company dated 28 December 2007 and 31 December 2007, respectively in respect of, among others, the major and connected transaction of the Company. Unless otherwise defined, capitalised terms defined in the Circular shall have the same meanings when used in this announcement.

The Company announces that the Acquisition has been rejected by the Merger and Reorganisation Review Committee of CSRC (中國證券監督管理委員會併購重組審核委員 會) on 20 March 2008.

Trading in the A Shares of the Company on the Shenzhen Stock Exchange was suspended on 18 March 2008 and will resume at 10:30am. on 21 March 2008.

Trading in the H Shares of the Company

At the request of the Company, trading in the H Shares of the Company was suspended from 28 April 2005 to 10 May 2005, and has remained suspended since 10:00 a.m. on 16 June 2005, initially following various press releases regarding the investigation by the China Securities and Regulatory Commission on Greencool Technology Holdings Limited in connection with the possible misappropriation of funds of the Company. Greencool Technology Holdings Limited was then an indirect shareholder of the Company controlled by Mr. Gu Chu Jun, who was the then executive director and chairman of the Company and the controlling shareholder of Guangdong Greencool Enterprise Development Company Limited, the then single largest shareholder of the Company.

The Company is currently reviewing the relevant documents in relation to the suspension of H Shares, the events leading to such suspension and the actions taken by the Company and has submitted a resumption proposal to the Stock Exchange.

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

As at the date of this announcement, the Company’s directors are Mr. Tang Ye Guo, Mr. Wang Shi Lei, Ms. Yu Shu Min, Mr. Lin Lan and Ms. Liu Chun Xin; 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, 20 March 2008