Proposed Bonus Issue - Bonus Issue Of 22,832,500 New Ordinary Shares Of S$0.20 Each In The Capital Of HG Metal Manufacturing Limited (The "Company') On The Basis Of One New Ordinary Share For Every Four Existing Ordinary Shares Of S$0.20 Each (The "Shares") Held

On 30 December 2003 and 18 February 2004, the Company announced that its Board of Directors had proposed a bonus issue (the "Bonus Issue") of 22,832,500 new ordinary shares of S$0.20 each (the "Bonus Shares") on the basis of one new ordinary share of S$0.20 each (the "Shares") credited as fully paid for every four existing Shares held in the capital of the Company. Fractional entitlements will not be allotted but will be disposed of in such manner as the Directors in their absolute discretion deem fit for the benefit of the Company. It was also announced that the Bonus Shares will be issued pursuant to a general mandate obtained at the Annual General Meeting of the Company held on 28 March 2003 (the "2003 Mandate") which allows the Company's directors to issue Shares in the Company aggregating up to fifty (50) per cent of the Company's issued share capital for the time being. However, the Company will be holding its next Annual General Meeting on 27 February 2004 and the 2003 Mandate will expire on the same date, being replaced by a new mandate obtained at the said next Annual General Meeting (the "2004 Mandate"). Accordingly, the Company has written to the Singapore Exchange Securities Trading Limited (the "SGX-ST") to request that approval be given for the issue of the Bonus Shares pursuant to the 2004 Mandate instead. The SGX-ST has given its in-principle approval for this application on 18 February 2004,subject to:

1) shareholders' approval for the renewal of the share issue mandate at the Company's Annual General Meeting on 27 February 2004; and

2) the submission of the undertakings by Messrs Tan Chan Too, Tan AH Bee, Tian Chye Heng, Lee Leng Loke and Wee Piew not to dispose of 1,895,871, 1,124,400, 1,124,400 , 487,919 and 386,112 Bonus Shares respectively from the date of issue of the Bonus Shares until 21 March 2004.

The in-principle approval from the SGX-ST is not an indication of the merits of the Bonus Issue.

By Order of the Board
HG Metal Manufacturing Limited


Foong Lee Heng, Jasmine
Company Secretary
20 February 2004