C Y Foundation (HKG:1182) Enters Into Agreement with Paradise Entertainment (HKG:1180) for Subscription of New Convertible Notes and Option

Hong Kong, Aug 27, 2009 AEST (ABN Newswire) - C Y Foundation Group Limited, a Chinese interactive digital entertainment company, ("C Y Foundation", HKG:1182), today announced that the Company entered into an Agreement ("the Agreement") with Paradise Entertainment Limited ("Paradise Entertainment" HKG:1180) on 21 August 2009 for the subscription of 6% New Convertible Notes in the aggregate principal amount of HK$20 million with an option to subscribe for the Additional Notes in an aggregate principal amount of HK$20 million.

According to the subscription agreement, the conversion price is HK$0.04 (subject to adjustments). If the Option is exercised, the maximum number of new shares to be issued will be 1 billion shares or 100 million consolidated shares when the Share Consolidation becomes effective, representing approximately 20% of the issued share capital of Paradise Entertainment as at the date of the announcement and approximately 17% of the issued share capital of Paradise Entertainment as enlarged by the issue of the Conversion Shares. No application will be made for the listing of the New Convertible Notes and Additional Notes on the Stock Exchange of Hong Kong Limited or any other stock exchange. The maximum net proceeds of approximately HK$40 million to be raised under the Subscription will be used by Paradise Entertainment as general working capital.

"We believe this agreement is in the best interest of the Group's shareholders and is a long-term investment that benefits C Y Foundation's development," commented Mr. Theodore Cheng Chee Tock, Chairman of C Y Foundation. "Both C Y Foundation and Paradise Entertainment are committed to tapping opportunities in the digital entertainment market in the PRC. Paradise Entertainment is a leading company that primarily engages in the provision and operations of casino gaming. It has also diversified into the development and sales of electronic gaming system. C Y Foundation will benefit from leveraging the two companies' experience in electronic gaming to generate synergies that benefit the future growth of both parties," he added.

Both Paradise Entertainment and C Y Foundation stocks were suspended effectively from 9:30 am on 24 August 2009. Applications have been made for the resumption of trading of these stocks effectively from 9:30am on 27 August 2009.

Issued by Porda International (Finance) PR Group for and on behalf of C Y Foundation Group Limited.

Contact

Porda International (Finance) PR Group Ms. Harriet Lau TEL: +852-3150-6761 Email: harriet.lau@pordafinance.com.hk Ms. Alman Loong TEL: +852-3150-6731 Email: alman.loong@pordafinance.com.hk Ms. Jenny Yung TEL: +852-3150-6735 Email: jenny.yung@pordafinance.com.hk Fax: (852) 3150 6728