PegBio Co., Ltd. — Capital/Financing Update 2006

Oct 20, 2006

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(Incorporated in Bermuda with limited liability) (Stock Code: 1141)

ANNOUNCEMENT

The Directors announce that, pursuant to the terms of the Convertible Note, the conversion price of the Convertible Note has been adjusted from HK$0.205 per Share to HK$0.141 per Share as a result of the Open Offer. Also, pursuant to the terms of the Share Option Scheme, the exercise price of the Share Options has been adjusted from HK$0.295 per Share to HK$0.230 per Share and the aggregate number of Shares subject to the Share Options has been adjusted from 4,800,000 to 6,144,000 as a result of the Open Offer.

This announcement is made pursuant to Rule 13.27 of the Listing Rules. Reference is made to the announcement of Xin Corporation Limited (the “Company”) dated 17 August 2006, the circular of the Company dated 8 September 2006 and the prospectus of the Company dated 26 September 2006 (the “Prospectus”) in relation to the Open Offer. Capitalised terms used herein have the same meanings as defined in the Prospectus unless otherwise stated.

Pursuant to the terms of the Convertible Note, the conversion price of the Convertible Note has been adjusted from HK$0.205 per Share to HK$0.141 per Share as a result of the Open Offer.

Pursuant to the share option scheme of the Company adopted on 30 December 2002 (the “Share Option Scheme”) and in compliance with the provision of Rule 17.03(13) of the Listing Rules, the exercise price of the Share Options has been adjusted from HK$0.295 per Share to HK$0.230 per Share and the aggregate number of Shares subject to the Share Options has been adjusted from 4,800,000 to 6,144,000 as a result of the Open Offer.

By order of the Board Lo Ming Chi, Charles Chairman

Hong Kong, 20 October 2006

At the date of this announcement, the board of directors of the Company comprises Mr. Lo Ming Chi, Charles (Chairman), Mr. Yu Wai Man, Mr. Wilson Ng, Mr. Ng Wee Keat, and Mr. Ng Eng Leng as executive directors and Mr. Wong Kwok Tai, Mr. Lau Pok Lam and Mr. Ko Kwong Woon, Ivan as independent non-executive directors.

* For identification only

Please also refer to the published version of this announcement in The Standard.