Hong Kong Shares Give Up Private Placement

In June 30th, the red bean board of directors approved the motion on abandoning the implementation of the non-public offering of shares to the red bean group.

Red bean shares announced today, the company's board of directors held in December 21, 2007 to consider the adoption of the Hong Kong Group's non-public offering shares to buy its clothing company equity and other assets related to the three motion.

However, in the process of fulfilling the relevant procedures, due to the change of land policy due to the municipal planning problems, the main land for the purpose of entering the assets has made substantive obstacles to the integrity of the original issuance plan, and can no longer be compatible with the strategic development plan formulated by the company. Considering the above factors, the company decided to abandon the above three motions.

In the next three months, the board of directors will no longer consider bills related to the purchase of assets by non-public offering shares.