10:21     KANTONE HOLDING<01059>-Announcement&Resumption of Trading-9         

    received                No. of Shares                                     
                    Champion will not               not acquire               
    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                                      
            2,804,778,322           1,348,420,962           407,779,752       
            461,668,293             586,909,315                               
      Tranche 1 Bonds and the exercise                      (48.07%)          
            (14.54%)                 (16.46%)               (20.93%)          
      in full of the Subscription Right in                                    
      respect of the Original Tranche                                         
      1 Bonds                                                                 
                                                                              
    The possible impact of the issue of the Additional                        
    Tranche 1 Bonds and the Tranche 2 Bonds on                                
    shareholding structure of the Company cannot be                           
    ascertained at present because the Floating                               
    Conversion Price and/or the Fixed Conversion Price                        
    in respect of the Additional Tranche 1 Bonds and/or                       
    the Tranche 2 Bonds cannot be determined now. The                         
    Company will make separate announcement(s) if the                         
    Additional Tranche 1 Bonds and/or the Tranche 2 Bonds                     
    are to be issued.                                                         
                                                                              
    LISTING                                                                   
    No application will be made for the listing of, or                        
    permission to deal in, the Bonds and the Subscription                     
    Right on the Stock Exchange or any other stock                            
    exchange. Application will be made to the Listing                         
    Committee of the Stock Exchange for the listing of,                       
    and permission to deal in, the Shares to be issued                        
    upon conversion of the Original Tranche 1 Bonds or                        
    upon exercise of the Subscription Right in respect                        
    of the Original Tranche 1 Bonds.                                          
                                                                              
    DILUTION EFFECT ON SHAREHOLDERS                                           
    As the Company foresees the future dilution effect                        
    on the Shareholders resulting from the exercise of                        
    the conversion rights attaching to the Original                           
    Tranche 1 Bonds and the Subscription Right in respect                     
    of the Original Tranche 1 Bonds, the Company will keep                    
    the Shareholders informed of the level of dilution                        
    effect and all relevant details of any conversion                         
    and/or exercise of the relevant Subscription Right                        
    in the following manner:                                                  
                                                                              
    (a)     the Company will make a monthly announcement                      
    (the "Monthly Announcement") on the website of the                        
    Stock Exchange. Such announcement will be made on or                      
    before the fifth business day following the end of                        
    each calendar month and will include the following                        
    details in a table form:                                                  
                                                                              
    (i)     whether there is any conversion of the Bonds                      
    during the relevant month. If yes, details of the                         
    conversion(s), including the conversion date,