ANNOUNCEMENT ON THE SECOND NEGOTIATED BIDDING OF TEXTILES EXPORTED TO EU & THE USA OF 2007

Announcement on the Second Negotiated Bidding of Textiles Exported to EU & the USA of 2007

In accordance with the regulations in the Measures for Administration on Textile Export (Provisional) (hereinafter referred to as
the Measures) , Category 4, Category 5, Category 6, Category 7, Category 26, Category 31 exported to EU and Category 338/339, Category
340/640, Category 347/348, Category 349/649, Category 638/639, Category 647/648 and Category 847 exported to the USA in 2007 shall
implement negotiated bidding. Matters of concern are listed as follows:

Negotiated Bidding Gross in 2007 and the Amount of Second Negotiated Bidding

See Appendix 1 for the specific amount of Second Negotiated Bidding in 2007. With Romania and Bulgaria’ s official entry into the
EU on January 1st, 2007, the contract number of the 10 categories of textiles and clothing products exported to EU in 2007 is raised.

Negotiated Bidding Qualification and Available Amount

Qualification: The scaled enterprises with export achievements of the above-mentioned categories could participate this bidding.

Available Amount:

USA: In accordance with 2006 achievement got from export to USA and Article 11 and Article 12 of the Measures, get the available
amount of 2007, then deduct the bid-winning amount in the first bidding and get the available amount of this negotiated bidding.

EU: In accordance with 2006 achievement, of every enterprises, got from export to 25 member states of EU and Article 11 and Article
12 of the Measures, get the available amount of 2007.

The export achievement of Romania and Bulgaria shall not be included in the achievements of non-limited states (regions).

See Appendix 1 for the detailed minimum bidding amounts.

The Export Achievement

The export achievement of enterprises shall be calculated in accordance with Article 9 of the Measures.

Besides, bidding qualification auditing, export achievement auditing shall be conducted.

The available amount (maximum bidding amount) of the enterprises shall be promulgated online at www.mofcom.gov.cn, www.ccct.org.cn
or www.ec.com.cn on about April 2nd to April 6.

The Second Negotiated Bidding shall adopt the electronic bidding mode. The Electronic Bid Documents shall be submitted to the Bidding
Office between 9am of April 9 and 9pm of April 12. And the full amount of bid bond of the enterprises shall be submitted to the designated
bank.

The primary bid-winning matters shall be promulgated at www.ccct.org.cn on April 23. The formal bid-winning results shall be promulgated
at www.mofcom.gov.cn.

All the local departments of commercial administration shall be responsible for this negotiated bidding. Related policies and information
shall be promulgated at www.mofcom.gov.cn, www.ccct.org.cn and www.ec.com.cn.

Tel of the Bidding Office: 010-67739327, 67739213, 67739208

Fax: 010-67719297

Tel of China International Electronic Commerce Centre: 010-67870108

Fax: 010-67800343

Appendix:

1.

Amount, Price and Minimum Bidding Amount of Negotiated Bidding

2.

Export Achievement List of Enterprises (Customs Stat.)

3.

Export Achievement List of Enterprises (Adjusted)

4.

Achievement List of Enterprises on the Export to Romania and Bulgaria

5.

Operation Guidance on Electronic Bidding Technology

Ministry of Commerce

March 13, 2007