Shanghai Electric (Group) Corporation announced on Aug 12th, 2011 that it offered the sale of 100% equity capitals of Shanghai High Strength Bolting Co., Ltd and Shanghai Fastener & Welding Material Technology Research Centre by public tendering at Shanghai United Assets and Equity Exchange.

Shanghai Prime Machinery Company Limited decided to bid for the above equity capitals of Shanghai High Strength Bolting Co., Ltd and Shanghai Fastener & Welding Material Technology Research Centre. It authorizes the management to submit bids in accordance with the tender requirements published by the Equity Exchange.

Shanghai Electric (Group) Corporation is a substantial shareholder of Shanghai Prime Machinery Company Limited, therefore a connected person of Shanghai Prime Machinery Company Limited. As a result, the proposed acquisition, if materializes, will constitute a connected transaction of the Shanghai Prime Machinery Company Limited under the Listing Rules. In the event that Shanghai Prime Machinery Company Limited successfully win the bid and enter into a definitive acquisition agreement with the Shanghai Electric (Group) Corporation, Shanghai Prime Machinery Company Limited will comply with applicable disclosure and/or independent shareholders’ approval requirements as required by the Listing Rules.

Shanghai High Strength Bolting Co., Ltd engages in manufacture of high strength fasteners and it is in scale one of the biggest domestic manufacturing bases in high strength fastener for steel structure; Shanghai Fastener & Welding Material Technology Research Centre engages in research and development in innovative fastener technology, product and equipment and conducting quality testing in fastener. If Shanghai Prime Machinery Company Limited succeeds in acquisition, it will strengthen fastener business in domestic and international market.

About Shanghai Prime Machinery Company Limited
Shanghai Prime Machinery Company Limited is an integrated supplier of precious industrial parts and accessories, mainly engaging in the design, manufacture and sales of turbine blade, bearing, cutting tool, and fastener.