NATIONAL DEVELOPMENT AND REFORM COMMISSION, MINISTRY OF COMMERCE ANNOUNCEMENT NO. 79, 2005

National Development and Reform Commission, Ministry of Commerce

National Development and Reform Commission, Ministry of Commerce Announcement No. 79, 2005

[2005] No. 79

Since the beginning of 2005/2006 sugar refining period, sugar processing enterprises in the south of China postpone the start of processing,
which result in an increase of sugar price in the domestic and international market.

Increases of sugar price of production areas and sale areas both exceeded 60% compared with the same period last year. This intensifies
the difficulty in management on the sugar cane areas, effects the normal production of sugar refining enterprise and restrains the
consumption on sugar, which finally results in an infection to the healthy development on sugar industry.

In order to maintain the prices of sugar, guarantee the supply in the market, National Development and Reform Commission, Ministry
of Commerce and related departments decided to release some state reserved crude sugar, promptly process to be product sugar and
put them on the market.

The sugar production has reached the peak period at present and the inadequate supply situation shall be temporary. All the related
enterprises and departments shall try to promote a healthy development of sugar production and sugar refining industry.

National Development and Reform Commission

Ministry of Commerce

December 16, 2005