The equity mortgage contract on the 28.8 million restricted circulation shares (accounting for 11.78% of the total) pledged by Bright Oceans Group Co., Ltd. (the controlling shareholder of Bright Oceans Intertelecom Corporation) to Bank of Communication Harbin Branch, was rescinded on Jun 7th, 2007. On the same day, Bright Oceans Group re-mortgaged its 28.8 million restricted circulation shares of Bright Oceans Intertelecom Corporation for the loans from Bank of Communication Harbin Branch.