HIAP SENG Engineering Ltd.

Registration No: 197100300Z

28 Tuas Crescent Singapore 638719

Tel : 6897 8082

Fax: 6897-8081

NEWS RELEASE

HIAP SENG REPORTS SURGE IN NET PROFIT ATTRIBUTABLE TO

SHAREHOLDERS OF 64% AND 163% FOR 3QFY2010 AND 9MFY2010

RESPECTIVELY

Singapore, February 10, 2010

“Group”), a specialist integrated engineering group for the global oil-and-gas,

petrochemical and pharmaceutical industries, today announced a net profit attributable

to shareholders of S$7.9 million for the third quarter ended December 31, 2009

(“3QFY2010”), a 64.2% jump from the corresponding quarter (“3QFY2009”).

For 9MFY2010, net profit attributable to shareholders surged 163.4% to S$23.4 million

on the back of a 12.6% increase in revenue to S$194.7 million, resulting from a higher

percentage of completion in projects as well as higher profit margins from cost

efficiencies and improved productivity.– Hiap Seng Engineering Limited (“Hiap Seng” or the

S$’million 3QFY2010 3QFY2009

Change

(%)

9MFY2010 9MFY2009

Change

(%)

Revenue 68.2 71.3 -4.3 194.7 173.0 +12.6

Gross Profit 14.4 14.0 +2.6 42.5 22.7 +86.9

Gross Profit Margin

(%)

21.1 19.7 +1.4 ppt 21.8 13.1 +8.7 ppt

Profit Before Tax 9.2 6.1 +50.1 28.3 9.6 +192.8

Net Profit

Attributable to

Shareholders

7.9 4.8 +64.2 23.4 8.9 +163.4

Earnings per share

(cents)

2.59 1.58 +64.2 7.70 2.92 +163.4

Page 2 of 3

Said Mr. Frankie Tan, Chairman and CEO of Hiap Seng, “As the economy picks up, we

will continue with our efforts to control costs and improve productivity. At the same time,

we intend to enhance shareholder value by exploring new and viable business

opportunities.”

The Group’s order book as at today stands at S$216 million.

Review of Performance

For 3QFY2010, Group revenue decreased by 4.3% from S$71.3 million in 3QFY2009 to

S$68.2 million in 3QFY2010. However, the gross profit margin for the same period

increased to 21.1% from 19.7% in the previous corresponding period. This is attributed

to savings from the Group’s continued efforts in cost controls and improved productivity.

On the back of an improved gross profit margin in 3QFY2010 and the provision for

doubtful trade debts of S$2.9 million in 3QFY2009, Group net profit attributable to

shareholders increased by 64.2% to S$7.9 million in 3QFY2010 from S$4.8 million in

3QFY2009.

In line with the Group’s expectations, the gross profit margin for 9MFY2010 increased

to 21.8% from 13.1% for 9MFY2009. Continued efforts in cost controls and an improved

level of productivity accounted for this increase.

As at December 31 2009, the Group is in a net cash position with cash and cash

equivalents of S$31.3 million.

Outlook

The outlook for the oil-and-gas, petrochemical and pharmaceutical industries which the

Group serves remains positive, and this is expected to continue with the Group’s efforts

to control costs, improve productivity and explore new business opportunities in order to

enhance shareholder value.

Page 3 of 3

Corporate Profile

Established in 1971 and a main-board listed company, Hiap Seng is a specialist

integrated engineering group for the oil-and-gas, petrochemical and pharmaceutical

industries and is one of Singapore’s leading engineering groups serving the oil-andgas,

petrochemical and pharmaceutical industries.

The Group provides engineering services covering engineering, procurement &

construction (EPC) projects and plant maintenance services for the oil-and-gas,

petrochemical, and pharmaceutical industries in Singapore and beyond.

The Group operates six well-equipped fabrication yards in Singapore, Malaysia and

Thailand with a total land area of almost three million sq ft and a workforce of over

2,500 well-trained and skilled employees.

ISSUED ON BEHALF OF : Hiap Seng Engineering Ltd.

BY : Citigate Dewe Rogerson, i.MAGE Pte Ltd

1 Raffles Place

#26-02 OUB Centre

SINGAPORE 048616

For CDRi.MAGE

CONTACT : Ms Dolores Phua / Ms Andrea Low

at telephone

DURING OFFICE HOURS : 6534-5122 (Office)

AFTER OFFICE HOURS : 9750-8237 / 9667-5837 (Handphone)

EMAIL : dolores.phua@citigatedrimage.com

andrea.low@citigatedrimage.com

For Hiap Seng

CONTACT : Mr Tan Hak Jin

at telephone

DURING OFFICE HOURS : 6897-8082 (Office)

EMAIL : thj@hiapseng.com

014/10/002/HSEL

February 10, 2010