Circular - Discloseable Transaction acquisition of the entire issued share capital of Citiwell International Group Limited

On 28 August 2007, China Flavors & Fragrances Co. Ltd. (CFF) announced that Boton Investments Limited (Boton) which is an indirect wholly owned subsidiary of CFF has been entered into the agreement with Teng Zhou Shi Wu Tong Fragrances Company Limited (WT).

WT is a limited company established in the PRC and is principally engaged in the business of manufacturing and selling flavors, fragrances and food additives. As at 30 June 2007, the unaudited net asset value of WT was RMB22,579,615.10.

On 28 August 2007, Boton has conditionally agreed to acquire from WT the sale shares of Citiwell at the consideration of HK$ 120,000,000. The sole asset of Citiwell is 50% equity interest in WT.