10:21     KANTONE HOLDING<01059>-Announcement&Resumption of Trading-10        

    number of new Shares issued, conversion price for each                    
    conversion. If there is no conversion during the                          
    relevant month, a negative statement to that effect;                      
                                                                              
    (ii)    the number of outstanding Bonds after the                         
    conversion, if any;                                                       
                                                                              
    (iii)   the total number of Shares issued pursuant to                     
    other transactions, including Shares issued pursuant                      
    to exercise of options under any share option scheme(s)                   
    of the Company; and                                                       
                                                                              
    (iv)    the total issued share capital of the Company                     
    as at the commencement and the last day of the relevant                   
    month; and                                                                
                                                                              
    (b)     in addition to the Monthly Announcement, if the                   
    cumulative amount of new Shares issued pursuant to                        
    the conversion of the Bonds reaches 5% of the issued                      
    share capital of the Company as disclosed in the last                     
    Monthly Announcement or any subsequent announcement                       
    made by the Company in respect of the Bonds (as the                       
    case may be) (and thereafter in a multiple of such                        
    5% threshold), the Company will make an announcement                      
    on the website of the Stock Exchange including details                    
    as stated in (a) above for the period commencing from                     
    the date of the last Monthly Announcement or any                          
    subsequent announcement made by the Company in                            
    respect of the Bonds (as the case may be) up to the                       
    date on which the total amount of Shares issued                           
    pursuant to the conversion amounted to 5% of the                          
    issued share capital of the Company as disclosed in                       
    the last Monthly Announcement or any subsequent                           
    announcement made by the Company in respect of the                        
    Bonds (as the case may be).                                               
                                                                              
    GENERAL                                                                   
    The Company will comply with all applicable Listing                       
    Rules in respect of any alterations in the terms of                       
    the Subscription Right after issue, except where the                      
    alterations take effect automatically under the                           
    existing terms of the Subscription Right. A separate                      
    announcement in respect of such change will be issued                     
    by the Company.                                                           
                                                                              
    The Additional Tranche 1 Bonds and the Tranche 2 Bonds                    
    may or may not be issued and the Subscription Right                       
    in respect of the Original Tranche 1 Bonds, the                           
    Additional Tranche 1 Bonds and the Tranche 2 Bonds                        
    may or may not be exercised. The Company will issue                       
    a further announcement as required by the Listing                         
    Rules if any of the Additional Tranche 1 Bonds and                        
    the Tranche 2 Bonds are issued.                                           
                                                                              
    The terms of the Subscription Agreement were                              
    negotiated on an arm's length basis and the Directors                     
    believe that they are fair and reasonable so far as                       
    the Company is concerned.                                                 
                                                                              
    The Company will ensure that each of the connected                        
    persons of the Company (as defined in the Listing                         
    Rules) will not subscribe for any of the Bonds at the                     
    issue of such securities and that, after the issue                        
    of the Bonds, the Company will disclose to the Stock                      
    Exchange any dealings by any of the connected persons                     
    of the Company from time to time in the Bonds                             
    immediately upon the Company becoming aware of such                       
    dealings.                                                                 
                                                                              
    Save the transactions as disclosed in this                                
    announcement, the Company has not carried out any fund                    
    raising activities during the 12-month period                             
    immediately preceding the date of this