Sinotel Technologies Limited

PROPOSED ESTABLISHMENT OF AMERICAN DEPOSITARY RECEIPT FACILITY IN THE UNITED STATES OF AMERICA ("US")

The Board of Directors of Sinotel Technologies Ltd. (the "Company"; together with its subsidiaries, the "Group") wishes to announce that the Company is presently in discussions with The Bank of New York Mellon, US lawyers and other professionals with the intention to engage and form a team in relation to the establishment of an American Depositary Receipt ("ADR") facility in US. The ADRs are proposed to be traded in the US over-the-counter market. There are currently only four institutions providing ADR service in US, namely JPMorgan, Citibank, Deutsche Bank and The Bank of New York Mellon.

An ADR represents ownership in the shares of a non-US company and trades in the US financial markets. The stock of many non-US companies trade on the US stock exchanges through the use of ADRs. ADRs enable US investors to buy shares in foreign companies without undertaking cross-border transactions. ADRs carry prices in US dollars, pay dividends in US dollars, and can be traded like the shares of US-based companies.

Each ADR is issued by a US depositary bank and can represent a fraction of a share, a single share, or multiple shares of the foreign stock. An owner of an ADR has the right to obtain the foreign stock it represents, but US investors usually find it more convenient simply to own the ADR. The price of an ADR often tracks the price of the foreign stock in its home market, adjusted for the ratio of ADRs to foreign company shares.

The proposed establishment of the ADR facility will enable the Company to attract foreign investors since they are not required to bear time difference, cross-border transaction fees or currency exchange fees and will thereby expand the investor base of the Company and increase the liquidity of its shares. Such measure will increase the opportunity for the Company to carry out future fund raising activities.

As at the date of this announcement, the Company has not appointed any professional parties to commence preparatory work for the proposed establishment of the ADR facility as it is still at the discussion stage. The Board of Directors would also like to state that the undertaking of preparatory work will be extensive and time consuming in nature. As such, a fixed time-line cannot be ascertained at this moment. In addition, the Board of Directors would like to caution Shareholders and investors that the Company makes no assurance that such preparatory work will lead to the eventual submission and successful admission to the ADR program.

The Company will update Shareholders of further developments when appropriate. In the meantime, the Board of Directors would like to advise Shareholders and investors to exercise caution when dealing in the shares of the Company and to seek professional advice when in doubt.

By Order of the Board

Jia Yue Ting
Executive Chairman
6 August 2009

SAC Capital Private Limited ("SAC Capital") was the issue manager in the initial public offering of the Company. This announcement has been prepared and released by the Company. SAC Capital assumes no responsibility for the contents of this announcement.

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