09:43     HAYWOOD INV<00905> - Announcement (3)                               

    Hua Yu, its beneficial owners and its directors are independent           
    third parties who are not connected with the Company before               
    entering into the New IM Agreement.                                       
                                                                              
    Background of Hua Yu's Directors                                          
                                                                              
    The particulars of all of the directors of Hua Yu are as follows:         
                                                                              
    Mr. Fung Yiu Fai, Peter (*) is a responsible officer and                  
    a director of Hua Yu and Yu Ming and the Managing Director of             
    Yu Ming Investments Limited. Mr. Fung, together with other                
    directors of Hua Yu, was involved in the investment management            
    of Sino Technology Investments Limited. Between 1989 and June             
    1997, Mr. Fung was the Managing Director of Sun Hung Kai                  
    International Limited, a wholly-owned subsidiary of Sun Hung              
    Kai & Co. Limited, a company whose securities are listed on the           
    Stock Exchange. He was also a director of Sun Hung Kai Fund               
    Management Limited and Tian An China Investments Company Limited.         
    Mr. Fung has over 30 years of experience in investment banking            
    and has extensive exposure in strategic investments in Hong Kong          
    and Southern Asia. For his experience of investments on behalf            
    of third party investors, Mr. Fung acted as the investment                
    manager of (i) Sun Hung Kai International Limited during the              
    period between 1990 and 1997, (ii) the SHK Convertible Management         
    Limited during the period between 1993 and 1997; (iii) Yu Ming            
    Investment Management Limited since 1997.                                 
                                                                              
    Mr. Lee Wa Lun, Warren (*) is a responsible officer of Hua                
    Yu and Yu Ming, and a director Yu Ming Investments Limited. Mr.           
    Lee, together with other directors of Hua Yu, was involved in             
    the investment management of Sino Technology Investments Limited.         
    He joined Sun Hung Kai International Limited in July 1992 and             
    became a director of Sun Hung Kai International Limited in 1996.          
    He has been actively involved in managing the investment of Yu            
    Ming Investments Limited since 1992 and SHK Convertibles Limited          
    between 1992 and 1997. Prior to joining Sun Hung Kai                      
    International Limited, he worked in ABN Amro Bank N.V. in Hong            
    Kong during the period between March 1988 and July 1992. His              
    last position was Senior Assistant Manager of Corporate Banking           
    Department responsible for corporate account relationship. For            
    his experience of investments on behalf of third party investors,         
    Mr. Lee acted as the investment manager of (i) Sun Hung Kai               
    International Limited during the period between 1992 and 1997,            
    (ii) SHK Convertible Management Limited during the period                 
    between 1993 and 1997; (iii) Yu Ming Investment Management                
    Limited since 1997.                                                       
                                                                              
    At the time when Mr. Fung and Mr. Lee worked there, Sun Hung              
    Kai International Limited was active in investment management             
    and corporate finance. Sun Hung Kai International Limited                 
    established Yu Ming Investments Limited in 1989 and SHK                   
    Convertibles Limited in 1993, both are investment companies               
    listed on the Stock Exchange.                                             
                                                                              
    Mr. Wang Yi Nan (*) is a responsible officer and director                 
    of Hua Yu. Mr. Wang has 13 years experience in finance and                
    investment management in the PRC and 11 years experience in               
    finance and investment management in Hong Kong. Mr. Wang,                 
    together with other directors of Hua Yu, was involved in the              
    investment management of Sino Technology Investments Limited.             
    Between 1998 to January 2004, Mr. Wang was Senior Executive               
    Chairman of Jutian Securities Corporation Limited (*) ("Jutian"), a PRC   
    investment bank involved in                                               
    underwriting and sponsoring of new listings, and asset                    
    management in the PRC. Jutian is a member of the Shenzhen Stock           
    Exchange and the Shanghai Stock Exchange. As at the end of 2004,          
    according to the audited financial report, Jutian had total               
    assets of Rmb 1.8 billion, Rmb 1.2 billion