China Weaving Materials (HKG:3778) announces that the over-allotment option has been partially exercised by the sole lead manager on behalf of the international underwriters on 13 January 2012 in respect of 12.5 million additional new shares, representing approximately 5% of the offer shares initially available under the global offering before any exercise of the over-allotment option to cover over-allocation in the international placing.

The over-allotment shares will be issued and allotted by the company at HK$0.70 per share. The additional net proceeds to be received by the company upon allotment and issue of the over-allotment shares are estimated to be approximately HK$8.53 million. As a result of the said partial exercise of the over-allotment option, the total net proceeds from the global offering to be received by the Company are estimated to be approximately HK$152 million.

The company also announces that the stabilisation period in connection with the global offering ended on 14 January 2012. Stabilising actions have been taken during the stabilisation period. These stabilising actions were: (i) over-allocation of an aggregate of 12.5 million additional new shares in the international placing, representing 5% of the number of offer shares initially available under the global offering before any exercise of the over-allotment option; (ii) the borrowing of an aggregate of 12.5 million shares from Popular Trend pursuant to the stock borrowing agreement for the settlement of over-allocations in the international placing; and (iii) the partial exercise of the over-allotment option in respect of 12.5 million shares, representing approximately 5% of the offer shares initially available under the global offering before any exercise of the over-allotment option.