According to China Business News, negotiations between Danone and Wahaha have resumed. On March 15, Zong Qinghou and Emmanuel Faber, high level executives from the Wahaha and Danone respectively, began discussion. The two sides will discuss the listing of a new Wahaha group, stock proportions and profit assurance. However, a source from Wahaha said one of the key issues of the negotiations is that Zong is calling for Danone to make an apology for their aggressive remarks.

For more details, please read the full story in Chinese (http://finance.sina.com.cn/chanjing/b/20080317/03424627670.shtml).

(China.org.cn March 17, 2008)