CAGC Dismisses Auditor

More Chinese chicanery.

Co announced that the Board of Directors, based on the suggestion of the Audit Committee, has dismissed Ernst & Young Hua Ming as the independent auditor starting from March 14, 2011. The dismissal of Ernst & Young Hua Ming was made after thorough consideration by the Audit Committee, and the Board of Directors of the Company. The decision to dismiss the auditor was the result of Ernst & Young (China) Advisory Limited Beijing Branch Office entering into a SOX 404 service agreement including performing the test of the internal controls from 2008 to 2010. Recently, the public and the management team have raised doubts about this service agreement’s impact on Ernst & Young Hua Ming’s independence to act as the Company’s auditor. Co actively seeking a new auditor to finish the audit work for 2010 and file with the Securities and Exchange Commission with the least delay possible.