Press Release

SESDAQ-listed HG Metal Manufacturing Limited, Singapore's only steel stockist with manufacturing capability, has received in-principle approval from the Singapore Exchange Securities Trading Limited (SGX-ST) to upgrade to the SGX Main Board. With this, the listing and quotation of the company shares will be transferred from SESDAQ to the Main Board. The company will start trading on the Main Board this Friday, 07 May 2004.

Mr Wee Piew, HG Metal Chief Executive Officer said, "We are very delighted with this achievement as it marks a significant milestone in our company history. The upgrade to the Main Board will boost our profile as we seek to grow the company through the diversification and strengthening of our revenue base, effective cost management, suitable strategic partnerships and possible acquisitions.

"We would like to thank our staff, customers, suppliers, business partners and other key stakeholders for their continued support. They have been instrumental to our growth," he added.

HG Metal was listed on SESDAQ in March 2002. Full-year revenue for FY2003 crossed the S$100 million mark, reaching S$108.4 million while profit before tax amounted to S$4.3 million.

Other significant developments included the commencement of full operations of the company's second steel manufacturing plant costing approximately S$2 million in May 2003 and three rounds of share placements in May and September 2003 as well as in April 2004 that raised total net proceeds of S$9.6 million to meet increasing demand for HG Metal shares. To reward shareholders, in December 2003, it declared a bonus issue of 22,832,500 new ordinary shares of S$0.20 each on the basis of one new ordinary share of S$0.20 for every four existing ordinary share of S$0.20 each.

The prospects for the first half of FY2004 remain positive in view of healthy demand for steel and fairly strong steel prices globally.