Proposed Private Placement Of 8, 000, 000 New Ordinary Shares Of S$0.20 Each In The Capital Of HG Metal Manufacturing Limited (The "Private Placement")

The Directors of HG Metal Manufacturing Limited (the "Company") are pleased to announce that the Singapore Exchange Securities Trading Limited (the "SGX-ST") has today approved in-principle the Company's application for the listing and quotation of the 8,000,000 new ordinary shares of S$0.20 each (the "Placement Shares") in the issued and paid-up capital of the Company on the Official List of the Singapore Exchange Securities Trading Limited Dealing and Automated Quotation System, subject to:

(a) confirmation by the Company that the Placement Shares will not be placed to any persons prohibited under Rule 812(1) of the SGX-ST Listing Manual; and

(b) an undertaking from the Company to:

(i) make periodic announcements on the utilisation of the placement proceeds as and when the funds from the Private Placement are materially disbursed; and

(ii) provide a status report on the use of the placement proceeds in the annual report.

As announced on 20 May 2003, the Company had on that date entered into a Subscription Agreement with Lingco Marine Pte Ltd ("Lingco"), whereby Lingco had agreed to subscribe for the Placement Shares at a placement price of S$0.20 per Placement Share.

BY ORDER OF THE BOARD
HG METAL MANUFACTURING LIMITED



Tan Chan Too
Director