Nov 24, 2004

In response to the query raised by the Singapore Exchange Securities Trading Limited (the "SGX-ST") in its letter dated 24 November 2004 pertaining to substantial increase in the price and volume of Sinomem Technology Limited's (the "Company") shares today, the Company provides the following information:- Question 1: Are you aware of any information not previously announced concerning you (the issuer), your subsidiaries or associated companies which, if known, might explain the trading? - If yes, the information must be announced immediately. Company's Reply: We wish to announce that one of the Company's Executive Director and substantial shareholder, Ms Chen Ni, has sold 20 million vendor shares at a price of S$0.62 to institutional investors through a married deal exercise carried out on 24 November 2004. Following the sale, Ms Chen Ni will no longer be a substantial shareholder. She will have a balance of 10,000,040 shares in the Company, representing a stake of 2.5%, down from 7.5% previously. Question 2: Are you aware of any other possible explanation for the trading? Company's Reply: No Question 3: Can you confirm your compliance with the listing rules and, in particular, listing rule 703? Company's Reply: Yes.