09:23     HAIER ELEC<01169> - Announcement (2)                                

    binding acquisition agreement and the receipt of all                      
    applicable governmental, regulatory and                                   
    shareholders' approval in Hong Kong and the PRC, and                      
    the Company, respectively.                                                
                                                                              
    The Board also refers to the statements made in                           
    newspaper articles published on 26 May 2005 regarding                     
    the current status of the proposal of Further Asset                       
    Injection into the Company by the Haier Group. The                        
    Company wishes to clarify that the timing of Further                      
    Asset Injection, if materialized, will be subject to                      
    various factors, including the progress of                                
    restructuring of assets. The Directors understand                         
    from the Haier Group that it is currently considering                     
    and planning on the steps leading to Further Asset                        
    Injection. The Directors confirm that no further                          
    disclosure under Rule 13.09 and Rule 13.23 of the                         
    Listing Rule is required to be made at this stage.                        
    In the event that a transaction materializes, the                         
    Company will make appropriate announcements as                            
    required by the Listing Rules.                                            
                                                                              
    Save as disclosed above, the Board also confirms that                     
    there are no negotiations or agreements relating to                       
    intended acquisitions or realizations which are                           
    discloseable under Rule 13.23, neither is the Board                       
    aware of any matter discloseable under the general                        
    obligation imposed by Rule 13.09, which is or may be                      
    of a price-sensitive nature.                                              
                                                                              
    Shareholders and potential investors are advised to                       
    exercise caution when dealing in the shares of the                        
    Company.                                                                  
                                                                              
    This announcement is made by the order of the Board,                      
    the directors of which individually and jointly                           
    accept responsibility for the accuracy of this                            
    announcement.                                                             
                                                                              
    General                                                                   
    As at the date of this announcement, the executive                        
    Directors are Ms. Yang Mian Mian, Mr. Wu Ke Song, Mr.                     
    Chai Yong Sen, Mr. Liang Hai Shan, Mr. Cao Chun Hua,                      
    Mr. Cui Shao Hua and Mr. Song Chun Guang and the                          
    independent non-executive Directors are Mr. Lam Kin                       
    Kau, Mark, Mr. Fung Hoi Wing, Henry, Mr. Lau Ho Wai,                      
    Lucas and Mr. Wu Yinong.                                                  
                                                                              
    By Order of the Board of                                                  
    Haier Electronics Group Co., Ltd.                                         
    Yang Mian Mian                                                            
    Chairman                                                                  
                                                                              
    Hong Kong, 26 May 2005