The Board of Directors of DF China Technology, Inc. announced that on March 25, 2004, it received a letter from the Nasdaq Listing Qualifications Department indicating that the Company is subject to delisting because of its failure to comply with Marketplace Rule 4320(e)(2)(B), which requires a minimum of $2,500,000 stockholders' equity, unless the Company requests a hearing prior to the opening of business on April 1, 2004.
The Company plans to request an oral hearing before the Nasdaq Listing Qualifications Panel to review the determination reached by the Nasdaq Listing Qualifications Department before April 1, 2004. Under applicable rules, the hearing request will stay the delisting of the Company's securities, pending a decision by the Nasdaq Panel. The Company intends to present a plan to the Nasdaq Panel for achieving and sustaining compliance with Marketplace Rule 4320(e)(2)(B), but there can be no assurance the Nasdaq Panel will grant the Company's request for continued listing. The Company is actively pursuing various strategic alternatives with the goal of allowing it to achieve such compliance. If delisted, the Company would attempt to have its common stock traded in the over-the-counter market via the Electronic Bulletin Board.