NASDAQ Corporate Governance Exemption : Pursuant to NASDAQ's Marketplace Rules, foreign private issuers such as KONG may follow home-country practice in lieu of certain NASDAQ corporate governance requirements. KONG has notified NASDAQ of its intention to adopt a non-conforming practice of posting its annual reports to shareholders on its corporate website in lieu of mailing physical copies to record holders and beneficial owners of the company's American depositary shares and ordinary shares, as allowed under the laws of the Cayman Islands. KONG adopts this practice in 2007 to avoid the considerable expense associated with such mailing.
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