Medlive Technology Co., Ltd. — Major Shareholding Notification 2002

Mar 14, 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

The Board of the Company wishes to announce that its single largest shareholder, GKG, and Greencool entered into a supplemental agreement on 5 March 2002 in respect of the transfer of 204,775,755 legal person shares in the Company by GKG to Greencool. Pursuant to this supplemental agreement, the consideration for the transfer was reduced from RMB560,000,000 to RMB348,000,000 and the method of payment of the consideration was also changed.

The board of directors (the "Board") of Guangdong Kelon Electrical Holdings Company Limited (the "Company") wishes to announce that the Company has been informed that, in relation to the share transfer agreement (the "Agreement") entered into between its single largest shareholder, Guangdong Kelon (Rongsheng) Group Company Limited ("GKG") and Greencool Enterprise Development Company Limited ("Greencool") on 29 October 2001 in Shunde, GKG and Greencool entered into a supplemental agreement on 5 March 2002 with the following principal terms:

1. After negotiations between both parties, the consideration for the transfer of 204,775,755 legal person shares in the Company by GKG to Greencool was reduced from RMB560,000,000 to RMB348,000,000.

2. Greencool would assume GKG's debt to the Company in an amount of RMB348,000,000 as settlement of the consideration for the transfer of 204,775,755 legal person shares in the Company. Greencool already paid an amount of RMB150,000,000 to the Company and the balance of RMB198,000,000 would be paid by Greencool within 10 days after the transfer procedures of the legal person shares have been completed by GKG and Greencool.

By the Order of the Board

Guangdong Kelon Electrical Holdings Company Limited

Liu Cong Meng

Vice Chairman

Shunde, Guangdong, PRC, 13 March 2002

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