EMAIL DETAILS

Gents,


As promised on our call last night, below is a brief introduction of the IPO
Fund which we are closing this week and attached is the IPO teaser which I
have previously sent around:


- funds specifically purposed for HKSE pre-IPO cornerstone / anchor
investments

- RMB1.5 billion (approximately US$250mm), of which US$100mm will be
available for investment next week (Huatai Securities is our next target IPO
but like I said, selling like hot cakes! China Reinsurance and CRSC are also
scheduled for Q2 IPO)

- fund has one single LP with exclusive right of first refusal for each
potential investment

- investment period of 1 year with option to extend for another year


Depending on we ultimately engineer the SOE Fund, there may be some
overlapping opportunities but the SOE Fund will primarily focus on more
meaningful and more strategic investments rather than the quick-in-quick-out
approach of the IPO Fund. In any event, the IPO Fund adds to our track
record and also serves to illustrate our network of relationships which
enable us to obtain the investment opportunities as well as general market
enthusiasm on SOE reforms.


On the SOE Fund, the presentations in Europe have been encouraging and we
are keen to work with Burnham to start canvassing the North America market.
Given our lack of experience in that part of the world, we will be guided by
Burnham on procedures, documentation (placement memorandum?), regulatory
issues (SEC registration exemptions?).


Hunter C I will email you under separate cover re. Serbia Telkom.


Xin