ARC China Signs Agreement for Newest Public-Private Joint Private Equity Fund in Xi’an, China

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) May 19, 2010 -- The Administration Centre of the VCGFSX, The Westly Group, and ARC China held a signing
ceremony on April 29th, 2010 to mark the formation of the Xi’an ARC VC Fund (the “Fund”), which
will be established through a joint investment totaling RMB 300 million (US $43.9 million).

The enterprise will focus primarily on investments in new energy, clean energy, and renewable energy
in addition to domestic consumption-oriented businesses in the area.

As the capital city of the Shaanxi province, Xi’an is located in the southern part of the Guanzhong

Plain and has a registered population of over eight million people. The sub-provincial city
contains two major industrial zones, the Xi'an Economic & Technological Development Zone and
the Xi'an High-tech Industries Development Zone.

The Fund will be registered in the High-tech Industries Zone and will play a significant role in the
development of clean-tech and high-growth enterprises by facilitating the introduction of
advanced technologies into the Shaanxi province from abroad.

The cooperation will expand access for companies in the Xi’an area to foreign investment and

support the growth of local economy through increased employment opportunities including
management training for The Administration Centre of the VCGFSX staff.

ARC China will conduct due diligence, market analysis, transaction negotiation, corporate
governance advisory for portfolio companies, and thorough analyses of exit opportunities to
determine suitability of potential enterprises.

“We are pleased to announce the launch of ARC China’s sixth joint investment fund in Xi’an. We
believe this is an incredible opportunity to bring investors and investments together to propel the

city’s economy forward as a regional leader in the rapidly expanding energy and consumer
sectors,” said Adam Roseman, CEO of ARC China.

The Administration Centre of the VCGFSX is a state-owned enterprise responsible for operating
the Venture Capital Guidance Fund in the Shaanxi province.
The Westly Group is a clean technology-focused venture capital firm located in Menlo Park,
California. It focuses primarily on companies with proven revenue streams but is open to
investments in all stages of growth.

ARC China is a wholly‐owned foreign enterprise focusing on investment in China's domestic

consumption‐oriented high‐growth enterprises in developing Tier II and III cities.
ARC China has previously reached public‐private joint equity fund agreements in Dalian, Liaoning
Province; Chengdu, Sichuan Province; Danyang, Jiangsu Province; Jiangyin, Jiangsu Province,
and Shijiazhuang, Hebei province. The total fund size of agreements signed to date, including the
Xi’an-based fund, amounts to RMB 2.45 billion (US $358 million).

Posted by RRWDG

ADAM ROSEMAN     ARC CHINA     ARC INVESTMENT PARTNERS