Acquisition of Land Use Right

 19 March 2013

China Chaintek United Co., Ltd

("Chaintek", the "Company" or the "Group")

Acquisition of Land Use Right in respect of new logistics park

Chaintek is pleased to announce that it has acquired a Land Use Right ("LUR") relating to a plot of land of 145,600 m2 from the Government of China. The acquisition is in line with Chaintek's stated strategy of acquiring an LUR on which to construct a new logistics park, as detailed in the Group's AIM admission document and the trading update announcement on 31 October 2012. The plot of land is located 14 km from the Group's existing operational headquarters in Jinjiang, and is situated in an industrial zone which already houses a number of Chaintek's existing manufacturer customers.

The consideration payable for the LUR is RMB 221.0 million (approximately GBP 22.1 million), which is in addition to the RMB 52.0 million deposit already paid in 2011, and is payable in three tranches. The initial payment of RMB 81.9 million (approximately GBP 8.19 million), which was the final condition required for completion of the acquisition, was made on 18 March 2013, with the second payment of RMB 84.5 million (approximately GBP 8.45 million) payable on 6 April 2013. The final payment of RMB 54.6 million (approximately GBP 5.46 million) is payable upon commencement of construction of the logistics park, which the Company anticipates starting in the second half of 2013. These payments are beingmade from the Company's existing cash balances.

The Company will update the market in due course with any further details regarding the construction of the new logistics park.

In addition, the Company has recently arranged a bank loan facility of RMB 50.0 million (approximately GBP 5.0 million). The coupon payable on the facility will be determined at the time of drawdown (but would be 6.8% based upon current rates) and is repayable one year after the drawdown. It has been provided by Bankof Chinaand will be used to provide additional working capital for the Company.

Commenting on the trading update, Shufang Zhuang, Executive Director and the Group's founder, commented:

"We are delighted to have finalised the acquisition of the Land Use Right, and are particularly pleased that it is located in such a strategically optimal position in the industrial zone. The acquisition is an important step on the way to constructing a new logistics park, which forms a key part of the Group's growth plans, and we look forward to updating the market with further developments as appropriate. We are also pleased to have finalised the debt facility, as it gives additional validation of the Group's business strategy from local lenders."

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