FEDERAL INTERNATIONAL (2000) LTD

SUBSCRIPTION OF SHARES


The Board of Directors of Federal International (2000) Ltd ("the Company") would like to announce that the Company has subscribed for 480,000 ordinary shares of US$1.00 each in the capital of HP & T Products, Inc. ("HP & T") for a total consideration of US$480,000.00.

Following the above subscription of shares, the Company will hold a 60% interest or 480,000 ordinary shares, in the capital of HP & T. The balance of 40% will be held by 2 individual shareholders.

HP & T is a company incorporated in Houston, Texas with an authorised capital of US$1,000,000 divided into 1,000,000 ordinary shares of US$1.00 each and issued and paid-up capital of 800,000 ordinary shares of US$1.00 each.

The principal activities of HP & T are as follows:-

(i) designing and manufacturing of API6A/API6D high pressure and temperature valves and related products

(ii) research and development on oilfield products

The investment in HP & T is funded by the proceeds from the IPO.

The above transaction is not expected to have any significant impact on the earnings per share of the Company for financial year ending 31 December 2001.

None of the directors or substantial shareholders of the Company has any interest, direct or indirect, in the above subscription.

By Order of the Board
FEDERAL INTERNATIONAL (2000) LTD