Huda Technology & Education Development announced that the Company will use its additional paid in capital to distribute 2.5 shares to all shareholders for every 10 shares held; however, holders of nontradable shares (except an investment corporate group (Company A)) will give up the distributed shares and give them to holders of tradable shares, who will be actually given 2.65 shares for every 10 shares held. Company A will exempt the Company from the debt of RMB 14 million. The record date of share merger reform is February 25, 2009.