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

Oct 17, 2006

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.

==> picture [6 x 4] intentionally omitted <==

----- Start of picture text ----- *----- End of picture text -----

(Incorporated in Bermuda with limited liability)

(Stock Code: 1141)

RESULTS OF THE OPEN OFFER

The Directors announce that 141 valid applications were received for an aggregate of 215,866,145 Offer Shares under the Application Forms and 152 valid excess applications were received for a further of 74,599,645 Offer Shares under the Excess Application Forms by 4:00 p.m. on Wednesday, 11 October 2006, being the latest time for the application and payment for Offer Shares.

The Open Offer has become unconditional at 4:00 p.m. on Monday, 16 October 2006. An aggregate of 290,465,790 Offer Shares were applied for, representing approximately 117.1% of the total number of 248,112,042 Offer Shares offered under the Open Offer. As a result of the over-subscription of the Open Offer, the obligations of Kingston under the Underwriting Agreement have been discharged.

Certificates for Offer Shares and refund cheques in respect of partially unsuccessful excess applications are expected to be despatched by ordinary post on Wednesday, 18 October 2006. Dealings in Offer Shares will commence upon receipt of the share certificates for Offer Shares.

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.

RESULTS OF THE OPEN OFFER

At 4:00 p.m. on Wednesday, 11 October 2006, being the latest time for application and payment for the Offer Shares, 141 valid applications were received for an aggregate of 215,866,145 Offer Shares under the Application Forms and 152 valid excess applications were received for a further of 74,599,645 Offer Shares under the Excess Application Forms. An aggregate of 290,465,790 Offer Shares have been applied for, representing approximately 117.1% of the total number of 248,112,042 Offer Shares offered under the Open Offer. Vision Century, the controlling Shareholder, has subscribed for its assured entitlement of 153,471,588 Offer Shares pursuant to the terms of the Open Offer but did not make any excess application.

The Open Offer, which was fully underwritten by Kingston Securities Limited (“Kingston”), became unconditional at 4:00 p.m. on Monday, 16 October 2006. As a result of the over-subscription of the Open Offer, the obligations of Kingston under the Underwriting Agreement have been discharged.

All subscription monies for the Open Offer have been received by the Company as at the date of this announcement.

EXCESS APPLICATIONS

Regarding the 152 valid excess applications for Offer Shares applied for under Excess Application Forms, the Directors have resolved to allot, from among the 32,245,897 Offer Shares not applied for by Qualifying Shareholders, to the applicants such number of Offer Shares in the following manner:

Excess Offer Sharesapplied forvalid1 to 9991,000 to 10,999,99911,000,000 to 15,000,000	Approximatepercentage ofallocation based onTotal numberthe total number ofof excessTotal numberexcess Offer SharesNumber ofOffer Sharesof Offer Sharesapplied for inAllotmentapplicationsapplied forallottedthis categorybasis122100.00%Note A14945,940,04319,859,97443.23%Note B228,659,60012,385,92143.22%Note C15274,599,64532,245,897

Notes:

(A) The applicant will receive the 2 excess Offer Shares applied for in full.

(B) Allocation at approximately 43.23% of the excess Offer Shares they applied for and rounded up to the nearest number of Offer Share.

(C) Allocation at approximately 43.22% of the excess Offer Shares they applied for.

The above allocation of excess Offer Shares was based on the number of valid applications received in each tranche of excess Offer Shares set out in the first column of the above table and made on a pro-rata basis. The Directors consider that the allocation of the excess Offer Shares is on a fair and equitable basis.

SHARE CERTIFICATES AND REFUND CHEQUES

Share certificates in respect of Offer Shares which are successfully applied for and refund cheques in respect of partially unsuccessful excess applications will be sent on Wednesday, 18 October 2006 through ordinary post to the applicants, at their own risk, to the addresses specified in the register of members of the Company. Dealings in Offer Shares will commence upon receipt of the share certificates of Offer Shares.

1

SHAREHOLDINGS IN THE COMPANY

The following is a summary of the shareholdings in the Company before and upon completion of the Open Offer:

	Shareholdings before completion	Shareholdings before completion	Shareholdings upon completion	Shareholdings upon completion
Shareholder	of the Open Offer		of the Open Offer
	Number of Shares	%	Number of Shares	%
Vision Century	51,157,196	61.9	204,628,784	61.9
Public Shareholders	31,546,818	38.1	126,187,272	38.1
Total	82,704,014	100.0	330,816,056	100.0

No new substantial shareholder resulted by virtue only of the Open Offer.

By order of the Board Lo Ming Chi, Charles Chairman

Hong Kong, 16 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.

2