10:20     KANTONE HOLDING<01059>-Announcement&Resumption of Trading-8         

            pursuant to such                held by public                    
                    acquire further         further Shares                    
            conversion or           (assuming                                 
                    Shares and no           and no further          exercise  
    of such         no further                                                
    Total no. of            further Shares          Shares are                
            Subscription            Shares are                                
    issued Shares           are issued)             issued) and               
    Right)                                                                    
    and             issued) and                                               
    (assuming no            and approximate         approximate               
            approximate             approximate                               
    further Shares          percentage of           percentage of             
            percentage of           percentage of                             
    are issued)             shareholding            shareholding              
            shareholding            shareholding                              
                                                                              
    As at the date of this announcement     2,343,110,029                     
            1,348,420,962           407,779,752             -                 
    586,909,315                                                               
                    (57.55%)                (17.40%)                          
         (25.05%)                                                             
                                                                              
    Upon full conversion of the Original                                      
            2,505,430,528           1,348,420,962           407,779,752       
            162,320,499             586,909,315                               
      Tranche 1 Bonds (assuming no                  (53.82%)                  
            (16.27%)                (6.48%)         (23.43%)                  
      Shares are issued pursuant to                                           
      the exercise of the Subscription                                        
      Right in respect of the Original                                        
      Tranche 1 Bonds)                                                        
                                                                              
    Upon full conversion of the Original                                      
            2,535,867,601           1,348,420,962           407,779,752       
            192,757,572             586,909,315                               
      Tranche 1 Bonds and the exercise                      (53.17%)          
            (16.08%)                (7.60%)         (23.15%)                  
      in full of the Subscription Right                                       
      in respect of the Original Tranche                                      
      1 Bonds                                                                 
                                                                              
    The change in shareholding structure of the Company                       
    before and after the conversion of the Original                           
    Tranche 1 Bonds and the exercise of the relevant                          
    Subscription Right based on the Floating Conversion                       
    Price cannot be ascertained at present because the                        
    Floating Conversion Price can only be determined when                     
    the notice of conversion is issued by CSFB. In any                        
    event, the total number of Shares to be issued                            
    pursuant to the conversion of the Original Tranche                        
    1 Bonds and the exercise of the Subscription Right                        
    in respect of the Original Tranche 1 Bonds will not                       
    exceed 461,668,293 Shares, i.e. the threshold of the                      
    Existing General Mandate. CSFB has been informed by                       
    the Company that it will exercise the Downside Option                     
    to redeem the Original Tranche 1 Bonds if the number                      
    of Shares to be issued pursuant to the conversion of                      
    the Original Tranche 1 Bonds and the exercise of the                      
    Subscription Right in respect of the Original Tranche                     
    1 Bonds will exceed 461,668,293 Shares.                                   
                                                                              
    The maximum dilution effect of the full conversion                        
    of the Original Tranche 1 Bonds and the exercise in                       
    full of the Subscription Right in respect of the                          
    Original Tranche 1 Bonds with reference to the maximum                    
    number of Shares that may be issued under the Existing                    
    General Mandate as mentioned above will be as follows:                    
                                                                              
                                                    No. of Shares             
                                                    held by CSFB              
                    No. of Shares           No. of Shares           (assuming 
                    held by         held by Lawnside                CSFB has  
    not                                                                       
                    Champion                (assuming               disposed  
    of any                                                                    
                    (assuming               Lawnside will           Shares