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Dated 28 January 2008

Dear friends,

My sincere apology for my late replies to your questions as I was away for a business trip soon after our results announcement.

Thanks for your questions posted over the past week. I am happy to answer your questions online. I will repost the questions in blue italics followed by my comments in black.

Kenny the fish

Dear Jayster, you wrote:

Hi Kenny,

Congrats on your fantastic set of FY2007 results! I do have some concerns on how rising inflation due to high oil prices and slowing economic growth globally due to the US sub-prime crisis would affect Qian Hu's profitability and expansion plans in 2008. Whatt's your take on this?

Hi Jayster,

Thank you for your kind words about our result. We are getting better but we're not "fantastic" yet!

Businesses are more concern about deflation than inflation. Politicians and low income earners worry more about inflation. Lifestyle products like pets are less affected by inflation whereas common goods like food staples are more sensitive to inflation. Different industries are affected by inflation differently. Those who can pass on the rising cost and doesn't enter into long term sales contract will weather the inflation better.

Qian Hu is in the service and lifestyle niche industry. Moreover, we export to more than 70 countries with 1000 over species of fish and 3000 types of accessories. Not all the countries suffer high inflation at the same time and we do not rely on any single one country, product or customer. I believe our diversification strategy has provided us with stability in our profitability and future plans.

Do have a FUN New Year!

Kenny the fish

Dear Serene Lim, you wrote:

Hello Kenny,

I saw those fish on TV that feeds on the dead skin of people's feet. I hear it can cure certain foot diseases.

Is this a new product segment for Qian Hu? Do you intend to franchise this health spa concept or just sell the fishes to retailers for home use?

Hi Serene,

Yes, there are medical reports stating the spa fish can indeed cure some types of foot diseases. This is an additional service we provide to bring more "FUN" to our visitors but not a segment we are looking into expanding. We are very much focused in expanding our core businesses.

Happy New Year!

Kenny the fish

Dear Gerald Toh, you wrote:

I saw your interview on CNA talking about your expansion plans regionally. It seems that you are very passionate about your business.

In the light of the passing of Chemoil's CEO, who is a driving figure in his business, what succession plans does Qian Hu have should you the key figure leave the company?

Hi Gerald,

Since 2004, Qian Hu have started its own management trainees program aimed to groom a group of young and talented people so that in 15 to 20 years, they can take over our present generation of management.

Even as today, Qian Hu functions as a team rather than an individual. People gave me far too much credits for the success of Qian Hu. I am humbled by that. I believe even without my presence, Qian Hu will continue to grow.

Our management succession plan ensures continuality and growth in Qian Hu in the event the "talkative" Kenny the fish isn't around anymore.

Happy New Year!

Kenny the fish

Dear Marcus Wee, you wrote:

Have Qian Hu considered setting up an online store to sell its fishes and accessories to lower operating cost instead of operating physical retail branches?

Hi Marcus,

That has always been on my mind and if that materialise, it will not happen in Singapore. It will be in a country where the market is big enough.

Do have a Fun Year of the Rat!

Kenny the Fish

Dear Anthony, you wrote:

Hi Kenny,

I remember Qian Hu recently bid for a plot of land in the west side of Singapore. What is your intention for this plot of land?

Hi Anthony,

We intend to expand our dragon fish breeding, continue to invest in Research & Development facility and provide relief space on our current premises so that we can expand our export business.

Happy New Year!

Kenny the fish

Thanks again to all the investors who have posted their questions here. I hope I have answered them to your satisfaction. The next chance for us to correspond again will be the time when we announce our Half Year 2008 results. In the meantime, do feel free to visit our corporate website: http://www.qianhu.com/ and our IR website: http://qianhu.listedcompany.com for more information.

Take care and I look forward to our next online Q&A.

Happy New Year!

Kenny the fish