Category by Date - 27 June 2006

In the annual GEM Sponsorship eligibility review of Deloitte & Touche Corporate Finance Limited, the GEM Listing Committee took into account matters in relation to the listing of the shares of Codebank Limited on GEM in December 2001, in which Deloitte was the sponsor. The manner in which the Codebank listing was prepared gave rise to serious concerns on the part of the Committee as to (i) the competency, professionalism of the service and advice provided by Deloitte while it was acting as the sponsor to the Codebank listing; (ii) the guidance and advice provided to Codebank by Deloitte while it was acting as the continuing sponsor to Codebank after listing; (iii) the manner in which Deloitte discharged its responsibilities and obligations under the GEM Listing Rules; and (iv) its competency in acting as a sponsor. Without admission of liability on the part of Deloitte and Mr Chia Kee Loong Lawrence, a principal supervisor of Deloitte, but with the agreement of Deloitte and Mr Chia and noting similar action taken by the SFC against Deloitte and Mr Chia, the Committee decided that Deloitte may remain on the list of GEM sponsors but subject to the following conditions: (i) Deloitte agrees and undertakes to withdraw and not to involve itself as a sponsor in any new GEM Board listing applications for a period of nine months (starting from 27 June 2006); (ii) Mr. Chia agrees and undertakes to withdraw and not to take on any GEM sponsor work for a period of six months (starting from 27 June 2006); (iii) before resuming sponsorship of new listings, Deloitte will demonstrate to the satisfaction of the Exchange that it has retained competent staff, put in place appropriate and effective supervisory arrangements, and adopted an appropriate methodology for conducting due diligence; (iv) Deloitte be allowed during the period of withdrawal to carry out duties and responsibilities of a compliance adviser of a GEM company for which the mandate would end on 31 December 2006; and (v) Mr. Chia is to remain and perform the role of a principal supervisor of Deloitte subject to the conditions attached to Deloitte and Mr. Chia personally as described above. (Key dates) Committee's meetings - 5 May 2005, 22 June 2006; and Exchange's press release - 27 June 2006.