NOBLE CHINA INC. For Immediate Release TSE symbol: NMO CHINA COAST PROPERTY DEVELOPMENT LTD. TORONTO, April 9 , 2002 Background: The Shandong Provincial High Court, Shandong Province, PRC, advised the Company in August* last year that it intended to hear a lawsuit filed by China Coast Property Development Ltd. against Noble China Inc. and Shandong Noble Brewery Ltd. China Coast Property Development Ltd. is a company associated with Noble China Inc.'s former Chairman, Lei Kat Cheong. (* Company's press release August 23, 2001) The suit claims that Noble China Inc. failed to pay China Coast Property Development Ltd. for the transfer of the 70% interest in Shandong Shouguang Brewery Co. Ltd. to Noble China Inc. in 1994. The claim is for RMB 53.2 million (approximately Cdn.$9.7 million) The Company has been advised by the City of Shouguang that Shandong Noble Brewery Ltd., as a result of insolvency, sold the brewery in 2000 and the sale proceeds were applied against obligations of the brewery. Noble China Inc. maintains that it fulfilled its responsibilities in the 1994 transaction. Current Action: A Preservation Order has been issued by the Shandong Court to freeze certain bank accounts of the Zhaoqing Blue Ribbon Brewery Noble Ltd. and to restrict rights associated with Noble China Inc.'s equity interest therein, including rights to receive dividend income. The Company's legal counsel in China advises that this is a procedural matter and is expected in this type of litigation particularly as one of the defendants, Noble China Inc., is a foreign entity. We are further advised that the Court disregards the probable outcome of the lawsuit in issuing such an Order. In concert with legal counsel for the City of Zhaoqing, our sole partner in Zhaoqing Blue Ribbon Brewery Noble Ltd., we will be presenting a protest to the Shandong Court and appealing to have the Preservation Order lifted. For further information, please contact: George Taylor, Chairman and President Telephone: (416) 956-4906 E-Mail nci@noblechina.com |