09:50 DYNASTY FINE WINES GROUP LIMITED<00828> - Announcement (1) The Stock Exchange of Hong Kong Limited (the ``Stock Exchange'') takes no responsibility for the contents of this announcement, makes no representation as to its accuracy or completeness and expressly disclaims any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. This announcement appears for information purposes only and does not constitute an invitation or offer to acquire, purchase or subscribe for securities. Dynasty Fine Wines Group Limited (incorporated in the Cayman Islands with limited liability) (Stock code: 828) CLARIFICATION ANNOUNCEMENT The Directors wish to clarify certain information about the Company and the Listing as reported in the Articles appeared in various newspapers on 17 January 2005. Potential investors are strongly advised not to rely on the information contained in the statements as reported in the Articles with regard to points (i) and (ii) below. Any information not made nor contained in the Prospectus must not be relied upon by any prospective investors as having been authorised by the Company, the Sponsor, the Global Coordinator, the Bookrunner, the Lead Manager, the Hong Kong Underwriters, any of their respective directors, officers, employees or agents or any other persons involved in the Share Offer. All potential investors are urged to review the Prospectus before making investment decisions. This announcement is made with reference to the prospectus of Dynasty Fine Wines Group Limited (the ``Company'') dated 17 January 2005 (the ``Prospectus'') and the articles appearing in various newspapers on 17 January 2005 (the ``Articles'') which purportedly reported certain information about the Company as disseminated during the press conference of the Company held on 16 January 2005 (the ``Press Conference'') in relation to the proposed listing of the shares of the Company on the Stock Exchange (the ``Listing''). The Directors wish to make the following clarification statements. Terms used herein shall have the same meanings as defined in the Prospectus, unless otherwise stated. The Articles stated that Mr. He Xiuheng (``Mr. He''), the chairman and an executive director of the Company and/or Mr. Gao Xiaode (``Mr. Gao''), the general manager and an executive director of the Company, indicated in the Press Conference that (i) the Company's existing market share is approximately 13% in the mainland China and is expected to expand to 15% by 2008; (ii) the top ten wine makers currently have 60% of the market in mainland China; and (iii) the Group was one of the three largest suppliers in the mainland's fast expanding wine market. The Directors wish to clarify that the statements as mentioned in the Articles made by Mr. Gao and/or Mr. He during the Press Conference in respect of (i) existing and future estimated Dynasty's market share and (ii) market share of top ten wine makers above were made in response to questions raised by journalists attending the Press Conference and were purely based on Mr. He and/or Mr. Gao's experience and expectation. There was no supporting evidence which could verify the accuracy of such statements for the purpose of disclosure in the Prospectus. These statements were neither an estimate nor a forecast of the Group's market share and did not represent the view of the Company. With regard to Mr. Gao's statement that the Group was one of the three largest suppliers in the mainland's fast expanding wine market, the same has been disclosed on page 51 of the Prospectus where it was stated that Dynasty was second in place in the list of top ten wine producers in the PRC in 2003 in terms of annual turnover. In order to prevent similar events from happening again in the future, measures, including the provision of appropriate training on corporate governance, will be taken by the Company to the Directors on a timely basis to ensure their compliance with the Listing Rules at all times. Should there be any significant change affecting any matters contained in the Prospectus or any significant new matter arisen, the Company will make a further announcement and issue a supplemental prospectus under Rule 11.13 of the Listing Rules, unless the Stock Exchange agrees otherwise.