Xorella, Fong’s Cooperate To Form New Company

Xorella AG, Switzerland, and Hong Kong-based Fong’s Industries Co. Ltd. have announced a
cooperation agreement and the formation of Xorella Hong Kong Ltd., which now holds 100 percent of
Xorella AG.

Freddy Wanger, chairman, Xorella, said the company had been looking for a strong partner for
some time and sought a long-term solution to expand its presence in the global market. Xorella
believes Fong’s shares its values and vision for the future.

Wanger stated that Xorella will continue to manufacture its steam setting and conditioning
machinery in Switzerland. If, in the future, the decision is made for Fong’s to manufacture Xorella
equipment, such equipment will be sold onlyto the Chinese market.

November 2002