S$10 Million Convertible Loan Facility

The Board of Directors (the "Directors") of HG Metal Manufacturing Limited (the "Company") refers to the announcements made on 8 April 2005, 13 May 2005 and 13 June 2005 in relation to the S$10,000,000 Convertible Loan Agreement dated 13 May 2005 (the "Loan Agreement") entered into between the Company and Oversea-Chinese Banking Corporation Limited ("OCBC"), pursuant to which OCBC has agreed to make available to the Company a convertible loan facility (the "Convertible Loan Facility") in the aggregate amount of S$10,000,000, upon the terms and subject to the conditions therein.

The Directors are pleased to announce that the Company has made a draw down on the Convertible Loan Facility from OCBC in accordance with the terms and conditions of the Loan Agreement (the "Loan"). The net proceeds from the Loan amounting to approximately S$10.0 million will be used for the purposes of corporate expansion and applied to general working capital requirements of the Company.


Foong Lee Heng
Company Secretary
Singapore, 7 July 2005