The total amount for the early redemption is approximately HK$502 million.  It was arrived after arm"s length negotiations between China Aoyuan and the holder of the convertible notes.  China Aoyuan will satisfy the payment by its internal resources and/or bank financing. Upon redemption of all the convertible notes, all the convertible notes will be cancelled and the Group will not have any outstanding convertible notes.

Mr. Guo Zi Wen, Chairman and CEO of China Aoyuan, said, "China Aoyuan has swiftly expanded its property portfolio from Guangdong province to Chongqing and Beijing in the past few years. We are confident that the Group will remain a sound financial position after the early redemption of the convertible notes, and this action would offer more flexibility to the Group"s future development with the recent upturn in the PRC property market."