Further Update on Xian Haotian

12 Sep 2008 14:09



12 September 2008

Cathay International Holdings Limited

("Cathay" or the "Company")

Update on Investment in Xian Haotian Group

During the past few months, Xian Haotian Bio-Engineering Technology Co., Ltd. and its subsidiaries (the "Xian Haotian Group") has been conducting and fine-tuning the feasibility study relating to the inositol project, as announced on 28 April 2008. In the pilot phase of the inositol project, the key task was to optimise the technology used in the production process. Although the time spent on this phase was longer than expected, such technology has been refined and optimised with better than expected results. However, such prolonged pilot phase has resulted in a delay in finalising the raw material sourcing strategy and the sales and marketing strategy of the inositol project. This has led to a delay in the completion of the feasibility study.

Accordingly, Cathay and the senior management of the Haotian Group have agreed to extend the expiry date for the put and call options relating to the Company's investment in the Xian Haotian Group for a period of 10 months ending on 22 June 2009. The other terms and conditions of the investment in the Xian Haotian Group remain unchanged.

For further information, please contact:

Stephen Hunt

Deputy Chairman, Cathay International Holdings Tel: +852 2828 9289

END