HISENSE KELON ELECTRICAL HOLDINGS COMPANY LIMITED

海信科龍電器股份有限公司

(A joint stock limited company incorporated in the People’s Republic of with limited liability)

(Stock Code: 0921)

ANNOUNCEMENT ON THE OPINIONS FROM THE INDEPENDENT NON-EXECUTIVE DIRECTORS

This announcement is made pursuant to R13.09(1) of the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited.

We (namely Zhang Sheng Ping, Lu Qing and Cheung Yui Kai, Warren), as the independent

non-executive directors of Kelon Electrical Holdings Company Limited (“Kelon

Electrical” or the “Company”), have reviewed the proposed acquisition of all White Goods assets of Hisense Air-conditioning Co., Ltd (“Hisense Air-conditioning”) by allotment and issue of shares (A Shares) of the Company to Hisense Air-conditioning (“this

Acquisition”), Hisense Air-conditioning’s intended application to the Securities and Futures

Commission for a whitewash waiver in relation to the obligation to make a mandatory offer for this Acquisition (the “Whitewash Waiver”) and the continuing ordinary connected transactions between the Company and Hisense Air-conditioning and its connected parties to be incurred in

2008 after completion of this Acquisition (the “Continuing Connected Transactions”). After considering the advice from an independent financial adviser in Hong Kong, we consider that:

1. Kelon Electrical has made prior notification to us about this Acquisition and provided us with the related information and has communicated with us. Kelon Electrical has obtained our approval on the transaction proposal. After we have seriously reviewed the aforesaid transaction documents, we agree to put forward the aforesaid resolution to the board of

directors for consideration and approval;

2. This Acquisition is in compliance with the PRC laws and regulations and the regulatory

rules of China Securities Regulatory Commission (“CSRC”). The proposal and the

transaction conditions are fair, reasonable, practicable and in line with the Company’s long term development. This Acquisition and the whitewash waiver are in the interests of the

Company and its shareholders as a whole;

3. Beijing Zhong Wei Hua De Cheng Asset Appraisal Company Limited has issued an asset valuation report for this Acquisition. The selection and appointment procedure of this valuer are in compliance with regulations. The valuation assumptions are reasonable. The valuation methods comply with the relevant requirements and the actual circumstances of the valuation target. The asset valuation methods are appropriate and the asset valuation results are reasonable;

4. The Continuing Connected Transactions contemplated thereunder between Kelon Electrical and Hisense Air-conditioning, Hisense Group and its associates are conducted based on ordinary business transaction conditions and the related agreements. The transaction conditions in the agreements are fair and reasonable, and in the interests of the Company and its shareholders as a whole. The signing of connected transaction agreements fulfilled the statutory approval procedures;

5. The proposal of asset acquisition by allotment and issue of shares to selected entities by

Kelon Electrical is in compliance with the PRC laws and the provisions of CSRC. It will help enhancing the continuing profitability of Kelon Electrical and eliminate peer competition between Kelon Electrical and Hisense Air-conditioning fundamentally.

Accordingly, we recommend the independent shareholders to approve this Acquisition, the

Whitewash Waiver and the Continuing Connected Transactions contemplated thereunder between the Company and Hisense Air-conditioning and its connected parties.

Yours faithfully, Zhang Sheng, Ping Lu Qing, Cheung Yui Kai Warren Independent non-executive Directors of Hisense Kelon Electrical Holdings Company Limited

Suspension of Trading in the H shares of the Company

At the request of the Company, trading in the H Shares of the Company was suspended from 28 April 2005 to 10 May 2005, and has remained suspended since 10:00 a.m. on 16 June 2005, initially following various press releases regarding the investigation by the China Securities and Regulatory Commission on Greencool Technology Holdings Limited in connection with the possible misappropriation of funds of the Company. Greencool Technology Holdings Limited was then an indirect shareholder of the Company controlled by Mr. Gu Chu Jun, who was the then executive director and chairman of the Company and the controlling shareholder of Greencool Enterprise Development Company Limited, the then single largest shareholder of the Company.

The Company is currently reviewing the relevant documents in relation to the suspension of H Shares, the events leading to such suspension and the actions taken by the Company and will submit a resumption proposal to the Stock Exchange as soon as practicable.

By order of the Board of Hisense Kelon Electrical Holdings Company Limited Tang Ye Guo Chairman

As at the date of this announcement, the Company’s directors are Mr. Tang Ye Guo, Mr Yang Yun Duo, Mr Wang Shi Lei, Ms. Yu Shu Min，Mr. Lin Lan and Ms. Liu Chun Xin; and the Company’s independent non-executive directors are Mr. Zhang Sheng Ping, Mr. Lu Qing and Mr. Cheung Yui Kai, Warren.

Foshan City, Guangdong, the PRC, 28 December 2007