Announcement Of Profit Warning

HG METAL MANUFACTURING LIMITED
Company Registration No. 198802660D



ANNOUNCEMENT OF PROFIT WARNING

The Board of Directors of HG Metal Manufacturing Limited ("the Company") refers to our Half Year Financial Statement and Dividend Announcement made on 13 May 2005. In it we stated, "The directors remain cautiously optimistic about the Group's outlook for the second half of financial year 2005 ("FY 2005"). We expect the Group's turnover for the whole of FY 2005 to cross $250 million for the first time ever. We also expect net profit for FY 2005 to be higher than FY 2004."

Although the Board of Directors expects a higher sales turnover for the year ended 30 September 2005 as compared with FY 2004, we expect to report a lower profit than FY 2004, due to a sharper and longer than expected correction in global steel prices as well as the strong appreciation of the US dollar.

Further details of the Group's performance will be disclosed when the Company announces its financial results for FY 2005 on 22 November 2005.


By Order of the Board
Wee Piew
Chief Executive Officer
26 October 2005