Novautek Technologies Group Limited — M&A Activity 2000

Dec 19, 2000

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.

KONG SUN HOLDINGS LIMITED

江 山 控 股 有 限 公 司

(Incorporated in Hong Kong with limited liability)

CANCELLATION OF PRELIMINARY AGREEMENT

The Directors announce that as neither the terms of a formal sale and purchase agreement had been finalized nor had Completion occurred on or before 15 December 2000 as provided for in the Preliminary Agreement and no extension of deadline has been agreed, the Preliminary Agreement is cancelled with effect from 18 December 2000.

Unless otherwise stated, the terms used in this announcement shall have the same meanings as those defined in the announcement of the Company dated 15 September 2000 relating to the Discloseable and Share Transaction.

On 15 September 2000, the Directors announced that Great Star, a wholly-owned subsidiary of the Company, had entered into the Preliminary Agreement with Prosper Vision in relation to the acquisition of 50% interests in Global Focus at a consideration of HK$19,000,000. The principal and sole activity of Global Focus is investment holding relating to the investment in information technology educational services in Hong Kong. The proposed acquisition constitutes a discloseable and share transaction of the Company under the Listing Rules.

As neither the terms of the formal sale and purchase agreement have been finalized nor has Completion occurred on or before 15 December 2000 as provided for in the Preliminary Agreement and no extension of deadline has been agreed, the parties have entered into a cancellation agreement on 18 December 2000 pursuant to which the parties have agreed to cancel the Preliminary Agreement and release each other from all past, present and future obligations and liabilities under the Preliminary Agreement with effect from 18 December 2000, save in respect of repayment without interest by the Vendor to the Purchaser of the deposit and part payment of HK$500,000 already made on or before the close of business on 22 December 2000. The Directors confirm that no Consideration Shares have been or will be issued. The Directors consider that cancellation of the Preliminary Agreement does not have any material adverse impact on the business of the Group.

By Order of the Board

Kong Li Szu

Executive Director

Hong Kong, 18 December 2000.