This announcement supersede our MASNET announcement on 26.4.2001 in regard to the above matter.

Mainboard-listed Federal International (2000) Ltd ("Federal"), an established flowline control products distributor and service provider supporting the oil and gas and related industries in the region, announced today that its subsidiary, Federal Hardware Engineering Co Pte Ltd ("FHE"), has secured a US$8 million contract with PT Gunanusa Utama Fabricators ("Gunanusa").

The contract, which is for a period of 15 months commencing April 23, 2001, is to supply materials and services to TotalFinaelf E&P Indonesie's Peciko Development Project Phase 3 PCK3/EPSC 1 satellite wellhead platform located in Indonesia. Under the contract, FHE will supply all materials and services required for the project.

This contract is the second contract secured by FHE in a period of 3 months. FHE had earlier signed another contract worth US$12 million in January 2001 with Gunanusa to supply all piping materials and fittings, structural steel and rolled cans and miscellaneous items for Total Indonesie's Tunu Phase 8 project for compression platform located in East Kalimantan, Indonesia.

These contracts are expected to have a favourable material impact on the profitability of Federal for the financial year ending 31 December 2001 as 85% of the materials will be expected to be delivered by the end of the financial year. However, the contract is not expected to have any material impact on the consolidated net tangible assets per share and earning per share of Federal for the current financial year.

"We are all delighted with winning this contract as it once again demonstrates our strengths in procurement and servicing in the oil and gas industry. Securing this contract is also a barometer of our growth prospects and the robust growth of the industry," said Mr K K Koh, Federal's Executive Chairman and CEO.

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.

About Gunanusa

Gunanusa, a key customer of Federal and is 10% indirectly owned by us, is mainly involved in executing large turnkey projects in offshore platform projects, container cranes, boilers and pressure vessels.

Mr Iman Taufik, one of the substantial shareholders of Gunanusa, is also a non-executive director of Federal. The transaction is an Interested Person Transaction pursuant to Chapter 9A of the Listing Manual which Shareholders Mandate was obtained on 21 August 2000 and will be effective until our next Annual General Meeting.

The Audit Committee of Federal is of the view that the terms of the transactions are on normal commercial terms and are not prejudicial to the interests of Federal's shareholders.

Save as disclosed above, none of the Director or substantial shareholders of the Federal has any interest, direct or indirect, in the above said transaction.

Issued on behalf of Federal International (2000) Ltd
By Strategem Consultants Pte Ltd
For further informatiuon, please contact:
Ms Gwen W Ling/Tham Moon Yee
Tel: 227 0502 Fax: 227 5663
April 26, 2001