Due to the current adverse market condition, Netel Technology (HKG:8256) and the subscriber have agreed to terminate the subscription agreement with effect from 6 February 2012. Netel Technology considers that the termination has no material adverse impact on its financial and operational position.

On 25 August 2011, Netel Technology and the subscriber entered into a subscription agreement pursuant to which the subscriber agreed to subscribe for convertible bonds in the principal amount of HK$3.5 million at the conversion price of HK$0.1 per share.