10:27     SING TAO<01105> - Announcement (2)                                  

    Parties:   (1)   GCIS                                                     
      (2)  Sanlian Electronics                                                
      (3)  Sanlian Group Corporation (*) ("Sanlian Group")                    
                                                                              
    The Framework Agreement sets out, among others, (1) the terms for         
    settlement of the amount of RMB117,600,000 owing by the Group to          
    Sanlian Electronics under the Joint Venture Contract, and (2) the terms   
    for a new secured loan to be given by the Group to Sanlian Group.         
                                                                              
    (1)  Settlement under the Joint Venture Contract                          
                                                                              
    Pursuant to the Framework Agreement, it was agreed that by the payment    
    of RMB30,000,000 by the Group to Sanlian Electronics as consideration     
    for the injection of the intangible assets into JV Co., Sanlian           
    Electronics will waive the remaining RMB87,600,000 owing by the Group.    
    It was agreed that such payment will constitute full settlement of the    
    Group's payment obligations under the Joint Venture Contract.             
                                                                              
    (2)  Secured Loan                                                         
                                                                              
    In addition, as consideration for Sanlian Electronics agreeing to         
    settle the outstanding amount owing by the Group pursuant to the          
    Framework Agreement as described in (1) above, it was agreed that the     
    Group will procure a loan to Sanlian Group in the amount of               
    RMB60,000,000 (the "Loan") for a term of one year. The Loan may be        
    provided by a PRC bank through appropriate arrangement with the Group.    
                                                                              
    The Loan will be interest-free for the first six months from the          
    initial draw down. Thereafter, the Loan will be at an interest rate of    
    3% per annum from the beginning of the seventh month until the            
    repayment date on 28 April 2006. In the event that the Loan and accrued   
    interest are not repaid in full on the repayment date, default interest   
    will be charged at the rate of 6% per annum.                              
                                                                              
    The Loan will be secured by way of a share charge (the "Share Charge")    
    over Sanlian Group's and Sanlian Electronics' interests of                
    approximately 79.1% in aggregate in the registered capital of Shandong    
    Economic Observer Press Co. Ltd. (*) (formerly known as                   
    Shandong Yuanchuang Press Development Co. Ltd. (*))                       
    ("Shandong Co."), a limited liability company established under PRC       
    law. In the event that Sanlian Group fails to repay any part of the       
    Loan and accrued interest by the repayment date or in the event of        
    breach of the terms of the Framework Agreement and Sanlian Group fails    
    to repay the Loan and accrued interest within seven days after            
    repayment demand made by the Group, the Group has the right to enforce    
    the Share Charge. The Group and Sanlian Group will arrange to complete    
    all necessary procedures to facilitate the Loan and the Share Charge      
    within two months after the date of the Framework Agreement.              
                                                                              
    PRINCIPAL BUSINESS ACTIVITIES OF SANLIAN ELECTRONICS, SANLIAN GROUP AND   
    SHANDONG CO.                                                              
                                                                              
    Sanlian Electronics is a limited liability company established under      
    the PRC law and its principal business activities include the ownership   
    and operation of a broadband multimedia network in Jinan City,            
    Shangdong Province, the PRC. Sanlian Electronics is owned as to 91% by    
    Sanlian Group.                                                            
                                                                              
    Sanlian Group is a limited liability company established under the PRC    
    law. The principal activities of Sanlian Group include property           
    development and trading of home and office appliances.                    
                                                                              
    The principal business activities of Shandong Co. include advertising     
    and circulation operations of The Economic Observer, a newspaper          
    published in the PRC.                                                     
                                                                              
    None of Sanlian Electronics, Sanlian Group or Shandong Co. is connected   
    with any director, chief executive or substantial shareholder of the      
    Company or any of its subsidiaries or an associate of any of them.        
                                                                              
    PRINCIPAL BUSINESS ACTIVITIES OF THE GROUP                                
                                                                              
    The Group is principally engaged in (i) media ownership and services      
    which comprise newspaper, magazine and book publishing and the            
    provision of media-related services, (ii) human capital management        
    which comprises recruitment and continuing education media and            
    corporate training services, and (iii) broadband technology and           
    services.                                                                 
                                                                              
    REASONS FOR GRANTING THE LOAN                                             
                                                                              
    In consideration for Sanlian Electronics agreeing to waive the            
    remaining amount of RMB87,600,000 owing by the Group and to settle all    
    other payment obligations by the Group under the Joint Venture