Listed Companies' Announcement



March 13, 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 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. Under the terms of the contract, Federal will provide project management services and supply mechanical materials, mechanical engineering packages, electrical and instrumentations. Effectively, this scope of supply has created a quantum leap for FHE in terms of project and engineering management which is crucial to any EPC project. This contract runs for approximately 18 months from March 2003.

Commented Mr. K. K. Koh, Federal's Executive Chairman and CEO, "This latest contract win is significant as we managed to secure it based on our track record amidst strong competition. It re-affirms the robust outlook of the regional energy sector as well as Federal's leading position in the EPC sector. This is the first time we are partnering Astina-TEC and we hope to work together to participate in the numerous business opportunities offered by the oil and gas industry in Indonesia."

"The deal also fuels the transformation of our business model from one which is solely driven by trading and distribution business to an integrated global business supported by three strong business pillars – trading, R & D, engineering and manufacturing operations and value-added strategic partner in EPC projects," added Mr. Koh.

This contract is expected to have a positive material impact on the profitability and earnings per share of Federal for the financial year ending 31 December 2003, as about 75% of the materials will be delivered by end of FY2003. The contract is also expected to have a favourable 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 first six months ended June 30, 2002, Federal posted a healthy net profit of $1.5 million on a turnover of $51.04 million.

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

About PT Transmega Ekacipta Corp

PT Transmega Ekacipta Corporation was established in 1992 with the aim of accelerating the development of Indonesian resources and its national project execution capabilities. It is a member of PT Risjadson Holding and Investment Company, a major business group with extensive industrial and financial holdings in Indonesia.

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 13/03/2003 to the SGX