Listed Companies' Announcement



April 2, 2003, Singapore – SGX Mainboard-listed Federal International (2000) Ltd ("Federal"), an integrated engineering and procurement specialist supporting the energy and infrastructure sectors in the region, announced today that its subsidiary, Federal Hardware Engineering Co Pte Ltd ("FHE") has clinched a procurement contract worth S$7.36 million (US$4.2 million) from PT Yudistira Haka Perkasa for the LPG plant in Cilamaya, Indonesia. This LPG Plant will be run based on a 'Build-Own-Operate' contract with Pertamina.

FHE was appointed by PT Yudistira Haka Perkasa to be the procurement and logistics agent in Singapore. This contract will be completed by end October 2003.

Commented Mr. K. K. Koh, Federal's Executive Chairman and CEO, "We are pleased to have secured yet another contract from Indonesia. It re-affirms the robust outlook of the regional energy sector as well as Federal's leading position in the EPC (engineering, procurement and construction) sector."

"The discovery of natural gas reserves in Asia has also elevated the region to become the regional centre for the global liquefied natural gas business. The rising importance of natural gas as an alternative to oil as energy source also spells another exciting growth area which Federal and our business partners are advantageously positioned to tap."

This contract is expected to have a positive and favourable impact on the profitability and earnings per share of Federal for the financial year ending 31 December 2003. However, the contract is not expected to have any material impact on Federal's consolidated net tangible assets per share for the financial year ended 31 December 2003.

About Federal International

Federal is principally involved in the distribution of flowline control products (including valves, structural steel, steel flanges/ connectors and pipe fittings) to the oil and gas, power, chemical and pharmaceutical industries. By moving upstream into the design and manufacture of specialised valves and related products, Federal aims to be an integrated service provider and procurement specialist in the energy and infrastructure industries offering a complete one-stop service package.

For the financial year ended December 31, 2002, Federal posted a strong net profit of S$2.4 million on a turnover of S$96.1 million.

None of the Director or substantial shareholders of Federal has any interest, direct or indirect in the above said transaction.

About PT Yudistira Haka Perkasa

PT Yudistira Haka Perkasa's business activities are mainly in oil and gas production, which are run on either Technical Assistance Contract (TEC) or Joint Operating Body (JOB) basis.

Issued on behalf of Federal International (2000) Ltd
by Stratagem Consultants Pte Ltd

For further information, please contact:
Ms Gwen Ling/Ms Tham Moon Yee
Tel: 6227 0502
Fax: 6227 5663

Submitted by Koh Kian Kiong, Director on 02/04/2003 to the SGX