Stock Code: 000055, 200055 Stock ID: Fangda Group, Fangda B Announcement No. 2011-01

    China Fangda Group Co., Ltd.

    Announcement of Business Growth

    The members of the Board and the Company acknowledge being responsible for the truthfulness, accuracy, and completeness of the announcement. Not any false record, misleading statement or significant omission carried in this announcement.

    I. Prediction of business performance of the current term

    1. Type of prediction: increase at the same direction

    2. Descriptions of the prediction:

    Items

    Current report term

    Same period last year

    Changed by (%)

    Jan 1, 2010 – Dec 31, 2010

    Jan 1, 2009 – Dec 31, 2009

    Net profit attributable to the owners of parent company

    Around 53 mil to 62 mil yuan

    44.05 mil

    20%—40%

    Basic earnings per share

    0.10

    II. Audition on the business performance prediction

    This prediction announcement is not audited by a CPA.

    III. Causation of change in business performance

    Increase of main business turnover caused the increase of the Company’s business performance at the same direction.

    IV. Other statements

    The Company issued private A shares during the current report term, which made no comparability between basic earnings per share of current report term and same period last year due to the significant change of the number of the shares. Actual information on the business performance of year 2010 will be disclosed along with the Annual Report 2010 of the Company. The Company reminds the investors of being aware of the risks of investment.

    The above is for the attention of the shareholders.

    The Board of Directors of

    China Fangda Group Co., Ltd.

    January 12, 2011