Listed Companies' Announcement

FEDERAL INTERNATIONAL (2000) LTD

JOINT PRESS RELEASE

FEDERAL INTERNATIONAL APPLIES TO SUBSCRIBE FOR 5% OF TECHNICS' IPO SHARES - Both Federal and Technics aim to explore synergistic alliances in the near future


Singapore, April 8, 2003 – Technics Group Holdings Limited ("Technics"), which launched its initial public offering (IPO) of 25 million new shares at S$0.22 per share last week, today announced that Mainboard-listed Federal International (2000) Ltd ("Federal") has applied to subscribe for 5% of its IPO shares at S$0.22 per share. This amounts to an investment of S$275,000 for 1.25 million shares.

Technics is one of the leading homegrown specialist engineering service providers while Federal is an integrated engineering and procurement specialist supporting the energy and infrastructure industries in the region.

Commented Federal's CEO and Managing Director, Mr K. K. Koh, "We are pleased to take a stake in Technics. Both companies have core competencies and strengths which can complement each other. Together, we can forge a strong partnership to go for EPC (engineering, procurement and construction) projects supporting the oil and gas sector in the region."

Said Mr Robin Ting, Technics' founder and Managing Director, "We are delighted that Federal has given a vote of confidence in Technics through this investment. The oil and gas industry in the region is buoyant, and with Federal's stake in our IPO and the possibility of strategic alliance with them in bidding for future projects, we believe that we will be better positioned to win bigger contracts with higher value-added margins."

Technics: Poised for Growth

With operations in Singapore and Batam, and a representative office in Vietnam, Technics designs and develops process modules and equipment that are integrated to form the production and storage facilities for oil and gas exploration and production. Its major customers include established MNC companies in the oil and gas industry such as VietSovPetro Joint Venture, Keppel FELS Limited, Halliburton Multinational Inc. and Emerson Process Asia Pacific Private Limited. Its key markets include Singapore and Vietnam, which is one of the region's major oil producing countries. Its other markets include other oil and gas rich territories such as Indonesia, Malaysia and China.

A profitable company with a strong track record of reliability and prompt delivery, Technics aims to use its IPO proceeds of about S$4.3 million to fund its expansion and tap the robust growth in the oil and gas industry in the region.

Technics plans to expand geographically and broaden its business segments. As part of its growth plans, Technics has acquired a 20,000 sq m facility in Batam and intends to acquire a 16,759 sq m facility in Singapore to cater for larger and more complex Engineering, Procurement, Construction and Commissioning (EPCC) and Contract Engineering (CE) projects. These facilities, with waterfront access for easy loading and unloading of equipment, will allow Technics to more than double its manufacturing capability, enabling Technics to bid for larger and more complex EPCC and CE projects with potentially better margins.

In addition to Federal, Technics has also received an application for 2.5 million of Technics' placement shares from fund manager, AIB Govett (Asia) Limited, for one of the funds it manages. Technics' IPO closes on April 9, 2003, and trading is expected to begin on April 11, 2003. The manager, underwriter and placement agent of the issue is HL Bank.

FederaI's Contractual Wins

In recent weeks, Federal has won two major contracts. Last week, it announced its winning of a procurement contract worth S$7.36 million (US$4.2 million) from 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.

Earlier in March this year, Federal clinched a procurement and logistics contract worth S$36.42 million (US$20.9 million) from two Indonesian contractors – PT Astinaputera and PT Transmega Ekacipta Corp (collectively referred to as "Astina-TEC"). FHE was appointed by Astina-TEC to be the exclusive agent to handle the procurement, project management, logistics and engineering management for TotalFinaElf Indonesie's Tunu Field Development Project Phase 9 located in Kalimantan, East Indonesia.

Federal's efforts to develop and manufacture its own proprietary, specialized products for niche customers are beginning to make promising returns. Its 60%-owned subsidiary, HP&T Products Inc., based in Houston, USA, has made significant progress in securing business from several major drilling and service companies. Similarly, its investment in KVC (UK) Ltd in Scotland, U.K, is making some headway as sales from North Asia and Europe have also increased.

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. As at March 28, 2003, Federal has a firm order book of S$104 million.

Issued on behalf of Technics Group Holdings Limited & Federal International (2000) Ltd

For further information, please contact:
Gwen W Ling/Florence Tan/Tham Moon Yee
Stratagem Consultants Pte Ltd
Tel: 62270502
Fax: 62275663

Submitted by Chng Geok, Company Secretary on 08/04/2003 to the SGX