China Wonder Limited

("the Company" or "China Wonder")

Loan Agreement  

China Wonder, the specialist engineering company based in Jinzhou in China, announces that it recently entered into a loan agreement pursuant to which  Wonder Employees Capital Limited ("WECL") has leant £200,000 to the Company. The loan is for a fixed term of 3 years with interest accruing at a rate of 5% per annum. During the period of the loan, WECL has the right to convert the loan into ordinary shares in the capital of China Wonder ("Ordinary Shares") at a price of 10p per Ordinary Share.  The £200,000 loan was used to fund the investment by China Wonder in Metroelectric plc which was announced by China Wonder on 22 December 2009. 

Mr Qingjie Zhao, a substantial shareholder in China Wonder, is a director and the sole shareholder of WECL and as such, the loan agreement constitutes a related party transaction. 

The directors have consulted with WH Ireland Limited, the Company's nominated adviser, and consider that the terms of the transaction are fair and reasonable insofar as its shareholders are concerned.

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