DFCT D F China Technology (MM)

DF China Technology Announces Sale of 5.2 Million Shares of Common Stock For US$2.1 Million Cash Subscription HONG KONG, April 7 /PRNewswire-FirstCall/ -- The board of directors of DF China Technology, Inc. announced that on April 5, 2004, the company successfully negotiated a share subscription agreement with an investment company, Squadram Limited. According to the agreement, Squadram agreed to subscribe 5,200,000 shares (the "Subscription Shares") of common stock of the company for cash of US$2,100,000.00. The Agreement was signed by the company and Squadram on April 5, 2004. The transaction will close on April 21, 2004. After the closing of the transaction, the shareholders' equity value of DFCT will increase to US$2,554,797.38, which meets the US$2,500,000.00 stockholders' equity requirements of NASDAQ for continuous listing. Besides, the board still plans ahead to acquire DiChain Software as approved at the shareholders' meeting held on March 25, 2004. Further to the company's announcement of March 29, 2004, the company has submitted an appeal notice requesting for an oral hearing which is scheduled to be held on April 22, 2004. The company presented future plans to Nasdaq Panel for achieving and sustaining compliance with Marketplace Rule 4320(e)(2)(B). CONTACT: Aaron Zhu Executive Director and Chief Financial Officer DF China Technology Inc. Tel: +852-2255-0688 DATASOURCE: DF China Technology, Inc. CONTACT: Aaron Zhu, Executive Director and Chief Financial Officer of DF China Technology Inc., +852-2255-0688

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