Listed Companies' Announcement


Federal International enters into joint venture with two SGX listed companies – Tiong Woon and Rotary Engineering to tap opportunities in People's Republic of China ("PRC")

The Board of Directors of Federal International (2000) Ltd ("Federal") is pleased to announce that it has entered into a Joint Venture Agreement ("the Agreement") with Tiong Woon Corporation Holding Ltd ("Tiong Woon") and Rotary Engineering Limited ("REL") to undertake projects in the PRC.

Tiong Woon China Consortium Pte. Ltd. ("TWCC"), a wholly-owned subsidiary of Tiong Woon which was formed on 26 November 2003, will be the vehicle for undertaking the joint venture projects. TWCC currently has an issued and paid-up capital of S$5,800,000 divided into 5,800,000 shares of S$1.00 each.

As part of this Agreement, Federal will subscribe for 892,308 ordinary shares in the share capital of TWCC, at a cash consideration of $1,156,923.72. The consideration was arrived at on a "willing-seller, willing-buyer" basis and after taking into account of the business potential looking forward by the joint venture partners.

Upon completion of the subscription, TWCC will have an issued and paid-up capital of S$8,923,077 which will comprise of 8,923,077 shares of S$1.00 each. Federal will hold a 10% stake in TWCC with Tiong Woon retaining a 65% stake whilst the balance will be held by REL.

TWCC will bid for and undertake projects in PRC involving the provision of heavy lifting, equipment installation, project engineering, heavy haulage and marine transportation services related to the petroleum, petrochemical, specialty chemical, power plant, oil and gas, water treatment and waste treatment industries.

The Board of Directors of TWCC will be: Mr Koh Kian Kiong, Executive Chairman and Chief Executive Officer of Federal; Mr Ang Kah Hong, Group Chairman and Managing Director of Tiong Woon; Mr Tan Swee Khim, Executive Director of Tiong Woon; and Mr Chia Kim Piow, Chairman and Managing Director of REL.

This joint venture will be funded by internal resources and is not expected to have a material impact on the net tangible assets or earnings per share of the Company for the financial year ending 31 December 2004.

None of the Directors or substantial shareholders of the Company has any interest, direct or indirect, in the above agreement.
Submitted by Chng Geok, Company Secretary on 31/03/2004 to the SGX