Stock Code: 000055,200055 Stock ID: Fangda Group, Fangda B
                        Announcement No. 2011-34
                      China Fangda Group Co., Ltd.
         Announcement on Progress of “Panasonic Lawsuit”


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. Description of the lawsuit
     It was on the 31st day of March 2010, the Company sue to Guangzhou
Intermediate Court against Panasonic Electric Works for abusing of two of the
Company’s patents. And it was accepted by the Court.
     II. Disclosure about the lawsuit
     1. This lawsuit case has been disclosed in 1. Major unsettled lawsuit under VII.
Contingent Issues in the Notes to Interim Financial Statements of 2010 dated August
19, 2010.
     2. An announcement was issued on December 30th, 2010 to disclose the progress
of the lawsuit against Panasonic Electric Works (China) Co., Ltd. (“Panasonic Electric
Works” hereafter)
     III. Latest progress of the case
      Panasonic Electric Works proposed compromise to the Company recently. A
settlement was agreed upon by the two parties, therefore the case is terminated.
     IV. Is there any undisclosed lawsuit issues?
     There isn’t any other lawsuit issues or arbitration issues involved by the
Company or the holding subsidiaries of the Company which should be disclosed but
not disclosed.
     V. Influences of the lawsuit upon the Company
      The lawsuit case against Panasonic Electric Works will benefit the Company’s
intelligent property protection, and lift the Company’s reputation in the whole
industry.
     The above is for the attention of the shareholders.


                                               China Fangda Group Co., Ltd.
                                                   The Board of Directors
                                                     December 23, 2011