Results of DF China Technology Shareholders Meeting on May 28th, 2004 HONG KONG, June 10 /Xinhua-PRNewswire-FirstCall/ -- DF China Technology, Inc. (OTC:DFCT) (BULLETIN BOARD: DFCT) today announced the results of its shareholders meeting held on May 28th, 2004 in Hong Kong. On May 28, 2004, at a special meeting of the shareholders of DF China Technology Inc. (the "Company"), the shareholders approved by substantial majorities the two issues presented at the meeting for shareholder consideration: 1. The shareholders ratified the action of the Company taken by it on February 4, 2004 when it sold 21.5 million shares of its common stock at US$0.20 a share, for a total of US$4.3 million, which sale was at a price of 50 percent of the market value of the stock the day of the sale and was in excess of 20 percent of the outstanding shares of common stock the day of the sale. The sale had earlier been approved by the shareholders on January 6, 2004. However, the Nasdaq staff later determined that the proxy materials sent to the shareholders when that meeting was called did not fully comply with Nasdaq notice requirements. Accordingly, the $4.3 million raised from the sale could not be considered by Nasdaq when calculating the amount of shareholders' equity for purposes of the Company meeting Nasdaq's standards for a continued listing on the Nasdaq SmallCap Stock Market. Our common stock was subsequently delisted by Nasdaq for failing to meet such standards. The ratification vote by the shareholders on May 28 was tabulated in two ways: by the votes of the shareholders of record on April 21, 2004 and by the votes of the shareholders that were eligible to vote on January 6, 2004 when the earlier approval of the sale of stock was authorized at a shareholders' meeting. The ratification of the sale of the stock was approved by each of the two methods of computation. 2. The shareholders approved a possible, but now an improbable, one-for- five stock consolidation of the Company's common stock. Earlier, the Nasdaq staff had advised the Company that, if the Company completed its proposed acquisition of all the outstanding capital stock of DiChain Software Systems (Shenzhen) Limited (" DiChain Software"), the transaction would be a "reverse merger" under Nasdaq marketplace rules. As such, the Company would have to apply for an initial listing with Nasdaq and meet all requirements for an initial listing including one that requires that the stock to be listed trades in the stock market at a price of $4 or higher. The Company challenged the $4 minimum stock price requirement as not required under announced Nasdaq rules, and a Nasdaq hearing panel upheld the Company's view on the matter. Accordingly, the Company -- as a "foreign private issuer" -- is not required to meet a $4 minimum stock price requirement when it applies for readmission to the Nasdaq Stock Market, and the Company's management does not propose to effectuate a one-for-five stock consolidation at this time. For further information, please contact: Aaron Zhu Executive Director and Chief Financial Officer DF China Technology Tel: +852-2255-0688 DATASOURCE: DF China Technology, Inc. CONTACT: Aaron Zhu, Executive Director and Chief Financial Officer of DF China Technology, +852-2255-0688

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