09:23     HAIER ELEC<01169> - Announcement (1)                                

    The Stock Exchange of Hong Kong Limited takes no                          
    responsibility for the contents of this announcement,                     
    makes no representation as to its accuracy or                             
    completeness and expressly disclaims any liability                        
    whatsoever for any loss howsoever arising from or in                      
    reliance upon the whole or any part of the contents                       
    of this announcement.                                                     
                                                                              
    HAIER ELECTRONICS GROUP CO., LTD.                                         
    (Incorporated in Bermuda with limited liability)                          
    (Stock Code: 1169)                                                        
                                                                              
    ANNOUNCEMENT                                                              
                                                                              
    The board of directors (the "Board") of Haier                             
    Electronics Group Co., Ltd. (the "Company") has noted                     
    the recent increases in the price and trading volume                      
    of the shares of the Company. The Board wishes to state                   
    that the Board is not aware of any reasons for such                       
    increases save as disclosed in the circular of the                        
    Company dated 18 November 2004 and its annual report                      
    for the year ended 31 December 2004 ("Annual Report"),                    
    regarding possible further injection of the assets                        
    relating to research, manufacturing and sales of                          
    various white-coloured household electrical                               
    appliances including but not limited to                                   
    air-conditioners, refrigerators, freezers and                             
    washing machines (collectively, the "White Goods")                        
    from the parent companies of the Company.                                 
                                                                              
    The Board also refers to the statements made in                           
    newspaper articles published on 26 May 2005 regarding                     
    the current status of the proposal to inject further                      
    assets into the Company by Haier Group Corporation                        
    and Qingdao Haier Investment and Development Co., Ltd.                    
    (together with their respective subsidiaries, the                         
    "Haier Group"). The Company wishes to clarify that                        
    the timing of such further asset injection, if                            
    materialized, will be subject to various factors,                         
    including the progress of restructuring of assets.                        
    In the event that a transaction materializes, the                         
    Company will make appropriate announcements as                            
    required by the Rules Governing the Listing of                            
    Securities on The Stock Exchange of Hong Kong Limited                     
    (the "Listing Rules").                                                    
                                                                              
    Shareholders and potential investors are advised to                       
    exercise caution when dealing in the shares of the                        
    Company.                                                                  
                                                                              
    The Board has noted the recent increases in the price                     
    and trading volume of the shares of the Company and                       
    wishes to state that the Board is not aware of any                        
    reasons for such increases save as disclosed in the                       
    circular of the Company dated 18 November 2004, in                        
    which it was stated, among other things, that the                         
    intention of the Haier Group is that the Company will                     
    become the listed flagship of its business involving                      
    the research and development, manufacturing and                           
    selling of the White Goods and that the the Company                       
    will consider the possible acquisition of the Haier                       
    Group's business and assets relating to the                               
    manufacture and sale of White Goods ("Further Asset                       
    Injection") which include Haier Group's interest in                       
    Qingdao Haier Co., Ltd. (a company listed on the                          
    Shanghai Stock Exchange), and the proposed terms of                       
    such acquisition at the relevant time, and its Annual                     
    Report, in which it was disclosed that the Company                        
    is exploring further injection opportunities from the                     
    Haier Group, subject to, among other things, the                          
    satisfactory completion of due diligence on their                         
    financial and business operation, the negotiation of                      
    a legally