09:19     NANJING PANDA<00553> - Announcement (2)                             

    4) On 26 April 2005, 10,000,000 State-owned legal person shares held      
    by PEGL, representing 1.52% of the total share capital of the Company,    
    were frozen by Suzhou Intermediate People's Court of Jiangsu Province,    
    People's Republic of China (*) for one year                               
    (the "Freezing Period"). The registration procedures in respect of the    
    said frozen shares with China Securities Depository & Clearing            
    Corporation Limited (Shanghai Branch) were completed on 26 April 2005.    
    As at the date of this announcement, the Company did not know why the     
    said shares were frozen and whether PEGL would lose control on the        
    frozen shares after the Freezing Period. Although PEGL still owned the    
    frozen shares, it could not freely transfer the frozen shares within      
    the Freezing Period.                                                      
                                                                              
    SUSPENSION AND RESUMPTION OF TRADING                                      
                                                                              
    Trading of H shares of the Company has been suspended since 11 March      
    2005 until the Company has properly addressed the concerns of the         
    Stock Exchange of Hong Kong Ltd. as referred to in the announcement of    
    the Company dated 18 March 2005. Shareholders and potential investors     
    should exercise extreme caution when dealing in the shares.               
                                                                              
    The Board of Directors of the Company comprising: 1. Executive            
    Directors: Mr. Li Anjian,                                                 
    Mr. Zhang Zuzhong; 2. Non-executive Directors: Ms. Liu Ailian, Mr.        
    Zhou Zhenyu, Mr. Tang Hongqing, Mr. Zhu Lifeng; 3. Independent Non        
    -executive Directors: Ms. Wan Hui, Mr. Cai Liang Lin, Mr. Ma Chung        
    Lai, Lawrence.                                                            
                                                                              
    By Order of the Board of                                                  
    Nanjing Panda Electronics Company Limited                                 
    Li Anjian                                                                 
    Chairman                                                                  
                                                                              
    Nanjing, the People's Republic of China                                   
    23 May 2005