Profit Guidance For FY 2008 Fourth Quarter Financial Results Ended 30 September 2008

The Board of Directors of HG Metal Manufacturing Limited ("the Company") would like to advise that the financial results of the Company and its subsidiaries (the "Group") will report a net loss for the fourth quarter of FY2008. This is due to (i) the sharp correction in steel prices in the last few months which had necessitated a write down of inventory to net realisable values; and (ii) foreign exchange losses due to the sharp appreciation of the US dollar against the Singapore dollar.

Notwithstanding the foregoing, the Group is still expected to report record net profits and turnover for FY2008.

The Company will be releasing its full year and 4th quarter financial results ended 30 September 2008 on 25 November 2008. The results will be posted on the Company's website, www.hgmetal.com.