Stock code：600061 Stock short name: Sinotex Notice No.:Lin2009-017

Sinotex Investment & Development Co., Ltd’s clarification announcement of the involved litigation

The Company and all members of its board of directors hereby guarantee that the content of the announcement is real, accurate and complete and shall assume joint and several liabilities for any false record, misleading

representation or material omissions therein.

Recently, Beijing Tongyizhong Specialty Fiber Technology & development Co., Ltd. (hereinafter also referred to as Tongyizhong) a wholly owned company by Sinotex Investment & Development Co., Ltd., (hereinafter also referred to as Sinotex or company)have received the writ of summons from the court of Milan in Italian,Sinotex hereby clarify the relating lawsuit as follows:

1. The summary of the legal proceeding

“Netherlands DSM Dyneema has started proceedings in a patent infringement lawsuit before the Court of Milan. In the litigation, Tongyizhong and an Italian company were considered as the infringers of their patent Ep1126052 high strength polyethylene fiber and its use, which accused Tongyizhong for the production and the promotion of the high strength polyethylene, simultaneously, the interim compensation and other requests claimed for Beijing Tongyizhong and the Italian company.” said the notice of the proceeding.

2. The cause of the litigation and the related parties’ introduction

Tongyizhong specializes in R&D, manufacture and sale of the ultra-high strength polyethylene fiber and owns complete independent intellectual property of the fiber.

The original owner of the patent EP1126052 of the litigation which Netherlands DSM Dyneema was claimed was Toyo Boseki Kashiki Kaisha Osaka. The Ep1126052 has been assigned from Toyo Boseki Kashiki Kaisha Osaka to DSM IP at 2007, and DSM Dyneema uses the Ep1126052 patent in its the capacity as license. They believed that Tongyizhong infringed the Ep1126052 and started the proceeding.

3. Sinotex’s clarification to the case

(1)Sinotex has been engaged in researching and developing, producing and saling of the ultra-high strength polyethylene fiber since 1994 and owning complete independent intellectual property of the fiber including 9 inventive patents which comprise a European patent of invention and a Korean patent of invention. The fibers manufactured in China are produced on the basis of the company’s patents EP1694888 and etc, with legitimate production permit and are protected by the related law of China and Europe.

(2)The process of Tongyizhong for preparing the ultra-high molecular polyethylene fibers is absolutely different from DSM Dyneema and without infringing the patent Ep1126052.

Company is always focusing on the protection of intellectual property, we have never infringed any other company’s any patents, and there is also not exist any infringement for promotion.

4. Company will actively responding to the legal proceeding and will make every effort to safeguard our interests and to protect the legal rights of the company from any invasion.

We will clarify the process of the case in time. Investors are reminded to be aware of the risks involved in investment and to make rational investment decisions.

　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 Sinotex Investment & Development Co., Ltd

　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　September 1, 2009

Stock code：600061 Stock short name: Sinotex Notice No.:Lin2009-015 Sinotex Investment & Development Co., Ltd’s clarification announcement The Company's Board of Directors and all members of its board of directors hereby guarantee that the content of the announcement is real, accurate and complete and shall assume joint and several liability for any false record, misleading representation or material omissions therein. 1. Brief description of the rumor Netherlands DSM Company announced a litigation news on their website on July 27 2009 that it has started proceedings in a patent lawsuit before the court of Milan against an Italian company and Beijing Tongyizhong Specialty Fiber Technology & development Co., Ltd. (hereinafter also referred to as Tongyizhong), a wholly owned company by Sinotex Investment & Development Co., Ltd., (hereinafter also referred to as Sinotex or Company), the announcement has been spreaded to some English websites. 2. Sinotex and Tongyizhong hereby clarify the news as following: i) Up till now, Sinotex and Tongyizhong have never received any litigation notice; ii) Sinotex has been engaged in researching ，developing, producing and saling of the ultra-high strength polyethylene fiber since 1994; Sinotex owns complete independent intellectual property of the fiber including 9 inventive patents which comprise a European patent of invention and a Korean patent of invention. Company and Tongyizhong are always focusing on the protection of intellectual property, we also do not infringe any other company’s any patents. Sinotex will make every effort to safeguard our interests and protect the legal rights of the company from any invasion。 China Securities Journal and Shanghai Securities News are the two newspapers for information disclosure of the Company. All the formal information released by the Company will be only published in two designated newspapers. Investors are reminded to be aware of the risks involved in investment and to make rational investment decisions. Notice is hereby given. The Board of Directors of Sinotex Investment & Development Co., Ltd August 12, 2009 SAFETEX ultra-high molecular weight polyethylene fiber and SAVIOUR ultra-high molecular weight polyethylene compound serve civil and military purpose. These products comply with State relevant standards, which has been approved by State security and other related organs. Moreover, they have been patented at abroad, covering full range of fiber and fiber compound.