Planetree International Development Limited — Capital/Financing Update 2003

Jun 27, 2003

THIS CIRCULAR IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION

If you are in doubt about this circular, you should consult your stockbroker or other registered dealer in securities, bank manager, solicitors, professional accountant or other professional adviser.

If you have sold your warrants and/or shares in YUGANG INTERNATIONAL LIMITED, you should at once hand this circular to the purchaser or to the bank, stockbroker or other agent through whom the sale was effected for transmission to the purchaser.

The Stock Exchange of Hong Kong Limited takes no responsibility for the contents of this circular, 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 circular.

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YUGANG INTERNATIONAL LIMITED （渝港國際有限公司） [*]

(incorporated in Bermuda with limited liability)

(the “Company”)

Executive Directors: Registered Office: Cheung Chung Kiu Clarendon House (Chairman and Managing Director) Church Street Yuen Wing Shing Hamilton HM 11 Zhang Qing Xin Bermuda Lam Hiu Lo Liang Kang Head Office and Principal Place of Business in Hong Kong: Non-Executive Directors: Rooms 3301-07 Lee Ka Sze, Carmelo China Resources Building Wong Wai Kwong, David 26 Harbour Road Wanchai Hong Kong

26 June 2003

To: All holders of 2003 Warrants

(and Shareholders for information only)

Dear Sir or Madam

Expiry of Subscription Rights attaching to the 2003 Warrants (Stock Code: 556)

The Directors of YUGANG INTERNATIONAL LIMITED (the “Company”) wish to remind holders of existing 2003 warrants (the “Warrants”) carrying rights to subscribe for shares of HK$0.01 each (“Shares”) in the Company on or before 18 July 2003 at a subscription price of HK$0.09 per Share that the subscription rights attaching to the Warrants (“Subscription Rights”) will expire on 18 July 2003 and thereafter any Subscription Rights which have not been exercised will lapse and the warrant certificates will cease to be valid for any purpose. The subscription price is currently HK$0.09 per Share.

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THIS CIRCULAR IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION

The Company has made the following arrangements regarding dealing in, transfers and exercise of Subscription Rights:

1. Trading in the Warrants on The Stock Exchange of Hong Kong Limited (the “Stock Exchange”) will cease immediately after close of business on 15 July 2003, and the listing of the Warrants will be withdrawn from the Stock Exchange at the close of business on 18 July 2003.

2. Registered holders of the Warrants who wish to exercise the Subscription Rights are requested to lodge the certificates for their Warrants with the subscription forms duly completed and signed, together with the relevant subscription monies, with the Company’s warrant branch registrars, Tengis Limited at G/F., Bank of East Asia Harbour View Centre, 56 Gloucester Road, Wanchai, Hong Kong (the “Registrars”) by no later than 4:00 p.m. on 18 July 2003.

3. Persons who are not registered as holders of the Warrants but wish to exercise the Subscription Rights are requested to lodge the relevant certificates for the Warrants, together with the duly executed and stamped forms of transfer and/or other documents of title, duly completed and signed subscription forms (which can be obtained from the Registrars) and the relevant subscription monies with the Registrars at the above address by no later than 4:00 p.m. on 18 July 2003.

4. Subscription forms lodging with the Registrars after 4:00 p.m. on 18 July 2003 will not be regarded as valid and will not be accepted. The Shares to be issued will be allotted not later than 28 days after relevant date of subscription and will rank pari passu in all respects with the then existing Shares of the Company.

Application has been made for the Warrants to be withdrawn from listing on the Stock Exchange with effect from the close of business on 18 July 2003.

Holders of the Warrants may wish to note that the closing price of the Shares and the Warrants on the Stock Exchange on 24 June 2003 being the latest practicable date prior to the printing of this announcement, was HK$0.036 and HK$0.010 respectively.

On behalf of the Board Yuen Wing Shing Director

• For identification purposes only.

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