ANNOUNCEMENT ON PUNISHMENT FOR THE UNPAID BID-WINNING EARNEST MONEY ON ENTERPRISES OF SECOND BIDDING IN 2006 FOR QUANTITY OF EXPORT LICENSE OF TEXTILES EXPORTED TO EU AND THE U.S

Announcement on Punishment for the Unpaid Bid-winning Earnest Money on Enterprises of Second Bidding in 2006 for Quantity of Export
License of Textiles Exported to EU and the U.S

The List of Enterprises of Second Bidding in 2006 for Quantity of Export License of Textiles Exported to EU and the U.S. , which failed
to pay the bid-winning earnest money, is now publicized (See Appendix).

In accordance with related regulations in Measures on Export Commodity Quota Bidding and Detailed Rules for the Implementation of
Bidding for Quantity of Export License of Textiles, the Tendering Committee would draw back the bid-winning quantity of the above-mentioned
enterprises and call off their bidding qualification on related categories in 2006 and 2007.

If any dissidence exists, please bring forward written opinions to the Tendering Committee within 10 days as from the promulgation
of this announcement. The enterprises also have the rights of statement and argument.

Tel: 010-67739327￿￿67739213￿￿67739209

Fax: 010-67719297￿￿67719300

Appendix: List of Enterprises with Unpaid Bid-winning Earnest Money

Tendering Committee for Textile Export of Ministry of Commerce

July 11, 2006