Singapore Exchange's Query On 17 January 2003 On Full year Financial Statement And Dividend Announcement

HG Metal Manufacturing Limited " the Company"

In response to a query from the Singapore Exchange on the increase in sales to external customers in Malaysia from $7,134,000 in FY 2001 to $8,903,000 in FY 2002, the Company replied that sales to external customers in Malaysia refers to sales by our Malaysian subsidiary, Jin Heng Li Hardware Sdn. Bhd.("JHL"). The increase in sales reflected the higher demand for steel products by JHL's customers in West Malaysia.