Placement Of Up To 18, 000, 000 New Ordinary Shares Of Par Value S$0.20 Each In The Capital Of HG Metal Manufacturing Limited

Further to our announcement made on 20 April 2004 in relation to the proposed placement (the "Placement") of up to 18,000,000 new ordinary shares of S$0.20 each (the "New Shares") in the capital of HG Metal Manufacturing Limited (the "Company"), the Board of Directors of the Company wishes to announce that the Singapore Exchange Securities Trading Limited (the "SGX-ST") has granted approval in-principle (the "Approval In-Principle") for the listing and quotation of the New Shares on the Official List of the SGX-ST Dealing and Automated Quotation System ("SGX-Sesdaq").

The Approval In-Principle is subject to the following:-

(i) a written undertaking from the Company that:

(a) it will make periodic announcements on the utilization of the Placement proceeds as and when the funds from the Placement are materially disbursed; and

(b) it will provide a status report on the use of the Placement proceeds in its Annual Report; and

(ii) a written confirmation from both the Company and Kim Eng Securities Pte. Ltd. (as placement agent) that the New Shares will not be placed to any of the persons prohibited in Rule 812(1) of the Listing Manual of the SGX-ST.

The SGX-ST's Approval In-Principle is not to be taken as an indication of the merits of the Placement, the New Shares, the Company or its subsidiaries.

BY ORDER OF THE BOARD